DCIT (TDS), Jaipur V. OM METALS INFRA PROJECTS LTD., Jaipur

ITA 53/JPR/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2061 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 13-01-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: B V MAHESHWARI C A DHK
• Keywords: Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 53/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11. DY. COMMISSIONER OF INCOME - TAX, (TDS), JAIPUR. CUKE VS. M/S OM METALS INFRA PROJECTS LTD., OM TOWER, CHURCH ROAD, M.I. ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. JPRO 01876 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI R.A. VERMA (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI B.V. MAHESHWARI (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 30.05.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 07.06.2017 VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT (A)-III, JAIPUR DATED 28/10/2016 PERTAINING TO A.Y. 2010-11. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) HAS ERRED IN LAW AND FACT BY CONSIDERING THE CLAIMS OF ASSESSEE WITH RESPECT OF NON DEDUCTION OF TDS ON TRANSPORTATION E XPENSE, HOWEVER, IN FACT, ASSESEE IS NOT INVOLVED IN THE BUSINESS OF PLYING, HIRING OR LEASING GOOD, WHICH ARE REQUISITE CONDITIONS FOR TH E APPLICATION OF SECTION 194 (C) OF THE IT ACT, 1961. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, WHETHER THE LD. CIT(A) IS JUSTIFIED IN CONSIDERING THE ASSESSEES C LAIM IN RESPECT OF DECLARATION IN FORM 27C WHICH WAS REQUIRED TO BE RE CEIVED AT THE TIME OF PURCHASE OF GOODS BY BUYER AND COPY OF DECLARATI ON SHOULD BE DEPOSITED BY RESPONSIBLE PERSON WITH COMPETENT AUTH ORITY ON THE SPECIFIED DATE AS REQUIRED BY RULE 37C AND THE ASSE SSEE FAILED TO COMPLY WITH SUCH LEGAL REQUIREMENTS. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN LAW AND FACT BY GIVING SPECIFIC DIRECTION ON ACCOUNT OF DEMAND 2 ITA NO. 53/JP/2017 M/S OM METALS INFRA PROJECTS LTD., JAIPUR. RAISED U/S 206C(7) FOR CHAGRINING INTEREST VIOLATES THE PROVISION OF SECTION 206C(7) OF THE ACT. 2. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AO MADE ADDITION ON ACCOUNT OF N ON-COLLECTION OF TDS. HE DREW OUR ATTENTION TO THE ASSESSMENT ORDER IN SUPPORT OF THE CONTENTION THAT THE TOTAL DEMAND RAISED IN RESPECT OF INTEREST AND THE TAX WA S RS. 14,63,407/- OUT OF WHICH RS. 5,96,258/- WAS THE INTEREST. IF THE INTEREST I S REDUCED, THE TAX EFFECT WOULD BE LESSER THAN THE PRESCRIBED LIMIT OF 10 LAKHS. LD. DR HAS SUPPORTED THE ORDER OF THE AO. HOWEVER, HE DID NOT CONTRADICT THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAND/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 10.00 LACS . UNDER THE POWERS VESTED BY SEC. 268A(1) OF THE I T ACT, CBDT ISSUED CIRCULARNO.21 OF 2015 DATED 10.1 2.2015(F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORIT IES BELOW DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS.10 LACS. THE C IRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PENDING APPEALS. 3.1 SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIRE CTED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS LESS THAN 10 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED B Y THE DEPARTMENTAL REPRESENTATIVES. 3 ITA NO. 53/JP/2017 M/S OM METALS INFRA PROJECTS LTD., JAIPUR. 3.2 THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEP TIONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN T HIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL THE SAME I S NOT MAINTAINABLE IN VIEW OF FORE GOING DISCUSSION. THEREFORE, THE PRESENT APPEAL IS DISMISSED AS NON-MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER IS PRONOUNCED IN THE OPEN COURT ON WEDNESDAY, THE 07TH DAY OF JUNE 2017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED: 07/06/2017 POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- DY. COMMISSIONER OF INCOME-TAX , (TDS), JAIPUR. 2. THE RESPONDENT M/S OM METALS INFRA PROJECTS LT D.,M.I. ROAD, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 53/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR