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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 641/JP/2018
आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 641/JP/2018 fu/kZkj.k o"kZ@Assessment Year : 2015-16 cuke Deputy Commissioner of M/s Rajasthan Avas Vikas & Vs. Income Tax, Infrastructure Ltd., Circle-6, Jaipur. Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABCA 3281 B vihykFkhZ@Appellant izR;FkhZ@Respondent jktLo dh vksj ls@ Revenue by : Shri J.C. Kulhari (JCIT) fu/kZkfjrh dh vksj ls@ Assessee by : Shri S.K. Gogra (CA). lquokbZ dh rkjh[k@ Date of Hearing: 24/08/2018 mn?kks"k.kk dh rkjh[k@Date of Pronouncement : 28/08/2018 vkns'k@ ORDER
PER: VIJAY PAL RAO, J.M.:
This appeal by the revenue is directed against the order dated 28/02/2018
of ld. CIT(A)-2, Jaipur for the A.Y. 2015-16. The revenue has raised
following grounds of appeal: (i) Whether on the facts in the circumstances of the case and in law the Id. CIT(A) was justified in directing to allow TDS credit of Rs. 15,46,954/- deducted by the bank on interest on FDRs without appreciating the fact that the said income is not includible in assessee’s total income and that the TDS payment is not from assessee’s income. (ii) Whether on the facts in the circumstances of the case and in law the Id. CIT(A) was justified in deleting the disallowance of Rs. 3,06,802/- made for depositing the employee’s contribution to PF & ESI beyond the prescribed time limit provided in respective Acts.
2 ITA No. 641/JP/2018 DCIT Vs M/s Rajasthan Avas Vikas & Infrastructure Ltd.
(iii) Whether on the facts in the circumstances of the case and in law the Id. CIT(A) was justified in holding that employee’s contribution to PF & ESI are governed by the provision of section 43B and not by section 36(l)(va) r.w.s. 2(24)(x) of the I.T. Act.
(iv) The appellant craves its rights to add, amend or alter any of the grounds on or before the hearing.”
At the time of hearing, the ld. AR of the assessee has raised an objection
of maintainability of the appeal of the Revenue due to the tax effect not exceeding Rs. 20 lacs as per the CBDT Circle No. 3 of 2018 dated 11th July,
2018. The ld. A/R submitted that in the facts of the present case, tax effect in
Revenue’s appeal is stated to be Rs. 17,86,300/- which is below the prescribed
limit of Rs 20 lacs.
The ld. D/R has fairly submitted that the tax effect involved in the
Revenue’s appeal is less than 20 lacs which is prescribed threshold limit in terms of the CBDT Circular No. 3/2018 dated 11th July, 2018 issued in supersession of
its earlier Circular No. 21 of 2015 dated 10.12.2015.
We have heard the rival contentions and perused the materials available
on record. It is observed that the demand/ tax effect in the Revenue’s appeal in question is below Rs. 20.00 lacs . Under the powers vested by section. 268A(1) of the I T Act, CBDT has recently issued Circular No. 3/2018 dated 11th
July, 2018 (F No. 279/Misc. 142/2007-ITJ(Pt) instructing the
authorities below that departmental appeal should not be filed
before ITAT where the demand/tax effect does not exceed Rs. 20 lacs.
The circular is specifically mentioned to be applicable for all pending appeals.
3 ITA No. 641/JP/2018 DCIT Vs M/s Rajasthan Avas Vikas & Infrastructure Ltd. 5. Subject to some exceptions, it is further directed by CBDT that all the departmental appeals pending before ITAT where the demand/tax effect is not exceeding than 20 lacs should be either withdrawn or not pressed by the departmental representatives.
The present appeal is not covered by any exceptions mentioned in the said CBDT circular. Since the tax demand in dispute in this departmental appeal is below the limit set out by CBDT for the appeal, the appeal of the assessee is not maintainable in view of CBDT Circular No. 3 of 2018 dated 11.07.2018. Accordingly the appeal of the Department is dismissed as not pressed/withdrawn.
In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 28/08/2018. Sd/- Sd/- ¼foØe flag ;kno½ ¼fot; iky jko½ (VIKRAM SINGH YADAV) (VIJAY PAL RAO) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 28th August, 2018 *Ranjan आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- The DCIT, Circle-6, Jaipur. 2. izR;FkhZ@ The Respondent- M/s Rajasthan Avas Vikas & Infrastructure Ltd., Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण]जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZ QkbZy@ Guard File (ITA No. 641/JP/2018) vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेज. त्महपेजतंत