ITO (TDS), Rohtak V. M/s. Veetee Fine Food Ltd., Sonepat

ITA 5534/DEL/2012

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1700 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 04-08-2015
• Assessment Year: misc
• Appeal Filed On: 01-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P CHANDREKAR
• Keywords: Tax effect
• Section: 194C

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H , NEW DELHI BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 5534 /DEL/201 2 AY: 20 09 - 10 ITO (TDS) VS. VEETEE FINE FOOD LTD. AAYAKAR BHAVAN VPO LARSOULI TEH. ROHTAK GANNAUR, SONEPAT PAN: AAACP 0658 C (APPELLANT) (RESPONDENT) APPELLANT BY : S H. J.P.CHANDREKAR, SR.D.R. RESPONDENT BY : NONE ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AGAINST THE O RDER DATED 27.8.2012 OF LD.CIT(A) , ROHTAK PERTAINING TO THE ASSESSMENT YEAR 200 9 - 10 . 2. THE GROUNDS RAISED B Y THE REVENUE ARE AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD.CIT(A), ROHTAK HAS ERRED IN LAW IN DELETING THE DEMAND OF RS.2,04,966/ - (1,66,639+38,327) INTEREST U/S 201(1A) OF THE ACT, WHICH WAS CREATED BY A.O. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD.CIT(A), ROHTAK HAS ERRED ON LAW AND FACTS IN TREATING THE PAYMENT MADE TO COBCOR IS NOT SUBJECT TO TDS, IGNORING THE FACTS THAT CONCOR IS A COMPANY INCORPORATED IN 1988 UNDER COMPANIES ACT WHOSE INCOME IS TAXABLE S PER THE PROVISION OF THE ACT AND, THEREFORE, FREIGHT PAYMENT TO CONCOR IS SUBJECT TO TDS U/S 194C OF THE ACT. 3 . THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY/ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL. ITA NO. 848/DEL/2011 MOONIGPA FINVEST P.LTD. A.Y. 2002 - 03 2 3. NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. WE HAVE HEARD SHRI J.P.CHANDREKAR, LD.S R.D.R. ON BEHALF OF THE REVENUE. ON A QUERY FROM THE BENCH THE LD. SR. D.R. VEHEMENTLY CONTENDED THAT THE TAX EFFECT IN THE CASE ON HAND IS MORE THAN THE LIMIT PRESCRIBE D BY THE CBDT AT THE TIME OF FILING OF THE APPEAL AND THAT THE FRESH CIRCULAR OF THE CBDT CLEARLY MENTIONS THAT THE TAX EFFECT LIMIT OF RS.4 LAKHS IS PROSPECTIVE IN NATURE AND HENCE THE LIMITS PRESCRIBED IN THE CIRCULAR CANNOT BE APPLIED TO APPEALS FILED FOR THE EARLIER ASSESSMENT YEARS . IT WAS CONTENDED THAT THE LIMIT APPLIES TO APPEALS FILED AFTER THE DATE OF THE CIRCULAR. 4. AFTER HEARING THE LD.SR.D.R. AND PERUSING THE MATERIAL ON RECORD WE HOLD AS FOLLOWS. THE TRIBUNAL, IN THE CASE OF DCIT VS. SUSHILA SARAOGI (2014) (11) TMI 294 ITAT KOLKATA, AFTER CONSIDERING THE PRECEDENTS ON THE SUBJECT, HELD THAT THE INSTRUCTION NO.5/14, ISSUED BY THE CBDT ON 10.7.2014 IS APPLICABLE TO THE PENDING APPEALS. THE TRIBUNAL FOLLOWED THE PROPOSITION LAID DO WN IN THE JUDGEMENTS OF VARIOUS HIGH COURTS, INCLUDING THE TWO JUDGEMENTS OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. M/S PS JAIN & CO. IN ITA 179/1991 DT. 2.8.2010 AND IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. DT. 3.3.2011. WE RESPECTFULL Y FOLLOW THE CO - ORDINATE BENCH ORDER. IN THE INSTANT CASES, AS THE TAX EFFECT BEING BELOW RS. 4 LACS, WE WITHOUT GOING INTO THE ISSUE ON MERITS, DISMISS THE APPEALS OF THE REVENUE IN LIMINE AS NOT MAINTAINABLE. IT IS TO BE MENTIONED THAT THE LD.SR.DR W AS UNABLE TO POINT OUT ANY EXCEPTIONAL CIRCUMSTANCES, MENTIONED IN BOARD INSTRUCTION NO.5 OF 2014 THAT HAVE LED TO FILING OF THIS APPEAL, DESPITE THE FACT THAT THE MONETARY LIMIT BEING BELOW THE PRESCRIBED LIMIT. ITA NO. 848/DEL/2011 MOONIGPA FINVEST P.LTD. A.Y. 2002 - 03 3 5. IN THE RESULT THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH OCTOBER , 2015. SD/ - SD/ - ( G.C .GUPTA ) ( J. SUDHAKAR REDDY ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 09 TH OCTOBER, 2015 MANGA COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR