ADDL. CIT, NEW DELHI vs. M/S SRL LTD., NEW DELHI

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ITA 1294/DEL/2017Status: DisposedITAT Delhi16 August 2021AY 2012-134 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal filed by the Revenue. This was primarily because the tax effect of the appeal was below the threshold limit prescribed by CBDT circulars for filing appeals.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting additions made by the AO. The additions were related to the non-deduction of TDS on payments made by the assessee to collection agents and franchisees.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the low tax effect, and if the additions made by the AO on account of non-deduction of TDS were justified.

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 40(a)(ia),Section 194,Section 194C,Section 195,Section 254(2)

AI-generated summary — verify with the full judgment below

Per Anadee Nath Misshra, AM (A) This appeal by Revenue is filed against the impugned order of Learned Commissioner of Income Tax (Appeals)-17, New Delhi, [“Ld. CIT(A)”, for short], dated 02.12.2016 for Assessment Year 2012-13. The grounds of appeal are as under :

1. “The Ld. CIT(A) erred in deleing the addition made by the AO u/s 40 (a)(i) and 40 (a) (ia) on account of non-deduction of TDS which assessee was liable to deduct u/s. 194 H/194C/195 of the Act on the discount given by the assessee to its collection agents / franchisee/ clinical trials etc in India.”

ITA No.-1294/Del/2017 SRL Limited 2. “The appellant craves to add, alter or amend any of the ground(s) of appeal before or during the hearing of this appeal.”

(B) At the outset, it was brought to our notice at the time of hearing, by learned Senior Departmental Representative (“Sr. DR”, for short) for Revenue; that tax effect in this appeal is below Rs. 50,00,000/-. Vide recent CBDT Circular No. 17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate Tribunal (“ITAT”, for short) has been enhanced to Rs. 50,00,000/-. In a subsequent clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. In view of the foregoing, it was submitted by Ld. Sr. DR for Revenue, that this appeal is not maintainable. He did not press the appeal. Therefore, this appeal is dismissed being not pressed; and also being not maintainable having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.

(C) Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration of this appeal if it is found that appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

ITA No.-1294/Del/2017 SRL Limited (D) In the result, this appeal by Revenue is dismissed. Our decision was orally pronounced in the Open Court in the presence of representatives of learned Sr.DR, after conclusion of hearing on 16.08.2021. Now, this written order is signed today on 16.08.2021.

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