INCOME TAX OFFICER, WARD-16(2), HYDERABAD vs. PREMIER ETHANOLS PRIVATE LIMITED, HYDERABAD

At the outset the learned DR submitted that there is a delay of one day in filing of the appeal and the application for condonation of delay was filed. After considering the reasons stated in the condonation application, the delay is condoned.

The learned Counsel for the assessee submitted that there is no demand in the assessment, and that the issue before this Tribunal is not giving of TDS credit and therefore, there is a “Nil” demand and therefore, the tax effect in this appeal is being below Rs.20.00 lakhs, it is to be dismissed as such. 4. The learned DR fairly conceded that there is no tax effect in this appeal, however, he argued the appeal on merits as well.

After hearing both the parties, I am of the opinion that this appeal is liable to be dismissed on account of low tax effect and also on merits. I find that the AO did not give credit for the TDS made on the ground that it is not pertaining to the turnover of the assessee. The CIT (A) has granted relief to the assessee by following the decision of the ITAT Bench at Visakhapatnam in the case of ACIT vs. Peddi Srinivasa Rao in ITA No.324/Vizag/2009 dated 3.3.2011 wherein the Tribunal has considered the pre- amended and post amended provisions of section 199 to hold that the TDS credit is to be granted to the assessee if the TDS certificate is produced by it and the TDS is paid to the Central Govt. I do not see any reason to interfere with this order of the CIT (A) even on merits. Therefore, appeal of the Revenue is dismissed both on the low tax effect as well as on merits.

In the result, Revenue’s appeal is dismissed.