ACIT 25(2), MUMBAI V. PRITI R. JAGGI, MUMBAI

ITA 791/MUM/2012

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 2211 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 22-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 06-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 194C

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI N.K . BILLAIYA, ACCOUNTANT MEMBER / I .T A NO. 791/MUM/2012 ( / ASSESSMENT YEAR :2008 - 09 THE ACIT - 25(2), C - 11 - PRATYAKSHAKAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 4000 051 / VS. MRS. PRITI R. JAGGI, 1702, KRISHNA HERITAGE, LINK ROAD, OPP. DON BOSCO SCHOOL, BORIVALI (W),MUMBAI - 40 0 092 C.O. NO. 229 /M UM /20 1 4 (ARISING OUT OF ITA NO. 791/M/2012 ASSESSMENT YEAR : 200 8 - 0 9 MRS. PRITI R. JAGGI, 1702, KRISHNA HERITAGE, LINK ROAD, OPP. DON BOSCO SCHOOL, MUMBAI - 40 0 092 [[ / VS. THE ACIT - 25(2), C - 11 - PRATYAKSHAKAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 4000 051 ./ ./ PAN/GIR NO. AF PP J 5440N ( / APPELLANT ) .. ( / RESPONDENT ) / REVENUE BY: SHRI K. RAVI KIRAN / ASSESEE BY: NONE / DATE OF HEARING : 2 2 .1 2 . 2015 / DATE OF PRONOUNCEMENT : 2 2 .1 2 .2015 / O R D E R PER N.K. BILLAIYA, AM: THIS IS AN APPEAL FILED B Y THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE VERY SAME ORDER OF THE LD. CIT(A) - 35 , MUMBAI DATED 2 9. 11 .20 11 . ITA. NO. 791/M/2012 C.O. NO. 229/M/14 2 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER: (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND IN LAW, THE ID.CIT(A) ERRED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OF COMMISSION EXPENSES U/S.40(A)(IA) OF THE ACT WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS CREDITED THE COMMISSION ON 30.06.2007 WHEREAS THE PROVISIONS OF THE SECTION 194H OF THE ACT HAVE BEEN AMENDED W.E.F. 01.06.2007. (2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND IN LAW, THE ID.CIT(A) ERRED IN DELETING THE ADDITION PARTLY MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OF PAYMENT MADE TO M/S.RELIABLE TRAVELS AND CARGO PVT. LTD. FOR NON - DEDUCTION OF TDS WITHOUT APPRECIATING THE FACT THAT THE PAYMENT MADE TO M/S.RELIABLE TRAVELS AND CARGO PVT. LTD. IS IN THE N ATURE OF CONTRACT PAYMENT AND DULY COVERED AS PER PROVISIONS OF SECTION 194C OF THE ACT. (3) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE ID.CIT(A) ERRED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWAN CE OF INTEREST FOR NON - DEDUCTION OF TDS WITHOUT APPRECIATING THE FACT THAT THE PROVISIONS OF SECTION 194A(3) OF THE ACT ARE IN THE NATURE OF STATUTORY OBLIGATION ON THE PART OF THE ASSESSEE. (4) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LA W, THE ID.CIT(A) ERRED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OUT OF FOREIGN TRAVELLING EXPENSES WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE INCURRED THESE EXPENSES ON THE FAMILY MEMBERS OF EMPLOYEES OF ONGC W HICH IS NOT ALLOWABLE. 3. BEFORE GOING INTO THE MERITS OF THE CASE, LET US FIRST CONSIDER CBDTS LATEST INSTRUCTIONS VIDE CIRCULAR NO.21/2015 DATED 10/12/2015, THE RELEVANT PORTION OF WHICH READ AS UNDER: - CIRCULAR NO. 21/2015 F NO 279/MISC. 142/2007 - ITJ (PT) ITA. NO. 791/M/2012 C.O. NO. 229/M/14 3 GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES NEW DELHI THE 10TH DECEMBER, 2015 SUBJECT: REVISION OF MONETARY LIMITS FOR FILI NG OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT - MEASURES FOR REDUCING LITIGATION - REG REFERENCE IS INVITED TO BOARD'S INSTRUCTION NO 5/2014 DATED 10.07.2014 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR FILING DEPARTMENTAL APPEALS (IN INCOME - TAX MATTERS) BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE INSTRUCTION, IT HAS BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT KEEPING IN VIEW THE MONETARY LIMITS AND CONDITIONS SPECI FIED BELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: - S. NO APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. IN THE CASE IN HAND, THE TOTAL DEMAND AS PER CIT(A) S ORDER IS LESS THAN THE AMOUNT OF RS. 10,00,000/ - , WHICH IS BELOW THE MONETARY LIMITS AS ITA. NO. 791/M/2012 C.O. NO. 229/M/14 4 MENTIONED IN CBDT CIRCULAR DATED 10.12.2015 (SUPRA) . FOLLOWING THE S AME, THIS APPEAL OF THE REVENUE IS DISMISSED. 5. SINCE THE REVENUES APPEAL IS DISMISSED THE CROSS OBJECTION FILED BY THE ASSESSEE BECOME OTIOSE. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 2 2 ND DECEMBER , 2015 . SD/ - SD/ - ( SAKTIJIT DEY ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 2 2 ND DECEMBER , 2015 . . ./ RJ , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI