THE DY.CIT, CIRCLE-3(1)(2), AHMEDABAD vs. M/S. RAGHUVIR EXIM LTD., AHMEDABAD

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ITA 2767/AHD/2017Status: DisposedITAT Ahmedabad26 September 2019AY 2011-123 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable due to the applicability of CBDT Circular No. 17 of 2019, which sets monetary limits for tax effects of pending appeals. The assessee's cross-objection was dismissed as not pressed.

What were the facts?

The Revenue appealed the deletion of an addition made on account of non-deduction of TDS on commission to foreign parties. The assessee argued that the appeal was hit by a CBDT circular revising monetary thresholds for appeals.

What were the issues?

Whether the Revenue's appeal is maintainable based on the monetary limits prescribed by CBDT Circular No. 17 of 2019. Whether the addition made by the AO on account of non-deduction of TDS on commission to foreign parties was justified.

Which sections of the Income-tax Act were involved?

Section 40(a)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD

For Appellant: Shri Lalit P. Jain, Sr. D.R

PER MAHAVIR PRASAD, JUDICIAL MEMBER & C.O. 32/Ahd/19 2 . A.Y. 2011-12 1. This appeal by the Revenue and the cross objection of the Assessee are directed against the order of the ld. CIT(A)-7, Ahmedabad dated 08.09.2017 pertaining to A.Y. 2011-12 and following grounds have been taken by the Revenue:

1.

1. The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 1,22,16,748/-made by the A.O. on account of non-deduction of TDS on commission to foreign parties.

2. On the facts and circumstances of the case, the Ld. Commissioner of Income-tax (A) ought to have upheld the order of the Assessing Officer in respect of above issues.

3. It is, therefore, prayed that the order of the Ld. Commissioner of Income-tax (A) may be set-aside and that of the Assessing Officer be restored.

2.

At the time of hearing, it was submitted by the Ld.AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

3.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

4.

In view of the above said circular, appeal of the Revenue is dismissed. & C.O. 32/Ahd/19 3 . A.Y. 2011-12

Now we come C.O. No. 32/Ahd/2019

5.

At the time of hearing and after dismissing the appeal of the Revenue, Ld. Counsel for the assessee requested that he does not want to press the cross objection. Therefore, same may be dismissed as not pressed.

6.

In the result, appeal filed by the Revenue is dismissed and appeal filed by the C.O. of the Assessee is also dismissed.

Order pronounced in Open Court on 26- 09- 2019

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