THE DCIT, CIRCLE-4, BARODA vs. SAYAJI HOTELS LIMITED, BARODA

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ITA 796/AHD/2012Status: DisposedITAT Ahmedabad18 September 2018AY 2005-062 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found that the appeal of the Revenue was not maintainable due to the low tax effect, which was below the threshold prescribed by the CBDT circular. The case did not fall under any of the exemption clauses.

What were the facts?

The Revenue appealed the deletion of an addition made on account of non-deduction of TDS on car hire charges. The assessee argued for dismissal based on low tax effect as per CBDT Circular No. 3 of 2018.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the prescribed limit in the CBDT Circular, and the case does not fall under any exemption.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 194C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD ‘A’ BENCH, AHMEDABAD

Per Pramod Kumar, AM: 1. By way of this appeal, the Assessing Officer has challenged correctness of the order dated 31st January 2012, passed by the learned CIT(A)-V, Baroda for the assessment year 2005-06, on the following ground:

“ On the facts and in the circumstances of the case and iin law the learned CIT(A) has erred in deleting the addition made u/s 40(a)(ia) of the Act on account of non deduction of TDS on payment of Car Hire Charges as mandated under provisions of section 194C of the Income-tax Act.”

2.

At the outset, learned counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No.3 of 2018 dated 11.07.2018.The learned Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

3.

We have heard the rival submissions and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No. 3/2018 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 11th July, 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 20 lacs. The Board has provided exemptions

I TA N o. 7 9 6 /A hd / 20 1 2 DCI T v s . S a ya ji H ot el s L t d Ass e ss me n t Y ea r : 2 0 05 - 0 6 Page 2 of 2 at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board’s order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts etc. We find that the present case does not fall within the exemption clause and the tax effect is less than Rs.20 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

4.

In the result, the appeal of the Revenue is dismissed. Pronounced in the open court today on the 18th September, 2018

Sd/- Sd/-

Mahavir Prasad Pramod Kumar (Judicial Member) (Accountant Member) Ahmedabad, the 18th day of September, 2018 **bt Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

1.

Date of dictation: ................low tax effect covered by CBDT Circular..18.09.2018.... 2. Date on which the typed draft is placed before the Dictating Member: .. 18.09.2018..... 3. Date on which the approved draft comes to the Sr. P.S./P.S.: …18.09.2018... 4. Date on which the fair order is placed before the Dictating Member for Pronouncement: . 18.09.2018.. 5. Date on which the file goes to the Bench Clerk : . 18.09.2018……. 6. Date on which the file goes to the Head Clerk : ……………………………. 7. The date on which the file goes to the Assistant Registrar for signature on the order: …. 8. Date of Despatch of the Order: ………………......

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