DCIT (TDS) 2(1), MUMBAI vs. L'OREAL INDIA P.LTD, MUMBAI

PDF · subscribers
ITA 6506/MUM/2014Status: DisposedITAT Mumbai25 July 2018AY 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 noted a CBDT circular regarding monetary limits for appeals. Excluding interest, the tax effect in this case fell below the specified limit, leading the Tribunal to dismiss the appeal as not pressed.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting additions made under sections 201(1)/201(1A). The dispute concerned whether TDS was correctly deducted under Section 194C or Section 194J for payments related to hazardous waste disposal.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 3/2018 to dismiss the Revenue's appeal due to the tax effect being below the prescribed monetary limit.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A),Section 194C,Section 194J

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “A” MUMBAI

Before: SHRI PAWAN SINGH & SHRI N.K. PRADHAN

For Appellant: Ms. Shraddha Swarup, AR
For Respondent: DR Assessee by : Ms. Shraddha Swarup, AR
Hearing: 18/07/2018Pronounced: 25/07/2018

ORDER

PER N.K. PRADHAN, AM

1.

This is an appeal filed by the revenue. The relevant assessment year is 2011-12. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-14 [in short ‘CIT(A)’], Mumbai and arises out of the order u/s 201(1)/201(1A) of the Income Tax Act 1961, (the ‘Act’).

2.

The ground of appeal

reads as under: On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made by the AO u/s 201(1)/201(1A) of the Act, holding that the assessee has rightly deducted TDS u/s 194C of the Act without L’oreal Pvt. Ltd. appreciating that the payment made under composite agreement for collection, transportation, treatment or disposal of hazardous waste, is liable for deduction of tax u/s 194J and not u/s 194C being rendering of a “technical service” for disposal of “hazardous waste”.

3. At the beginning of the hearing, the Ld. counsel of the assessee brought to our notice Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes (CBDT) and submits that the tax effect is below the monetary limit of Rs.20,00,000/- and hence the appeal filed by the revenue be dismissed as withdrawn. The Ld. DR also refers to the above Circular issued by CBDT

4. We have heard the rival submissions and perused the relevant materials on record. We find that the Assessing Officer (AO) has raised the following demand vide his order dated 18.03.2013 u/s 201(1)/201(1A) of the Act: Demand as per defaults determined Rs.15,79,672/- u/s 201(1) Interest determined u/s 201(1A) Rs.5,52,885/- Total Demand payable Rs.21,32,557 Rounded off to Rs.21,32,560/- In the above Circular, it has been clarified that ‘tax effect’ shall be tax including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute.

More judgments on Section 201(1)

All 3,835 judgments and leading authorities on Section 201(1) →

Recent GST High Court judgments

Search GST case law →