ITO, NEW DELHI vs. SHRI ROHIT JAIN, NEW DELHI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal dismissed the Revenue's appeal based on a CBDT circular revising the monetary limit for appeals to the ITAT. The tax effect of the appeal was below the revised limit, making it not maintainable.
What were the facts?
The Revenue appealed against the CIT(A)'s order which held that payments made by the assessee to clients were discounts and not brokerage/commission liable for TDS. The Revenue argued these discounts were effectively commission and thus disallowable under Section 40(a)(ia).
What were the issues?
Whether payments to clients were in the nature of brokerage/commission subject to TDS, and if the appeal was maintainable given the revised monetary limits set by CBDT.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC-3’ NEW DELHI
Before: SMT DIVA SINGH
Date of Hearing 04.07.2016 Date of Pronouncement 25.07.2016 ORDER The present appeal has been filed by the Revenue assailing the correctness of the order dated 17.10.2014 of CIT(A)-XXIII, New Delhi pertaining to 2010-11 assessment year on the following ground: – 1. “On the facts and in the circumstances of the case, the Ld.CIT(A) has erred in holding that no payment in the nature of brokerage/commission liable to Tax Deduction at Source u/s 194H of the Act and hence not hit by the provisions of section 40(a)(ia) of the Act, has been made by the assessee to his clients who had booked flats in various projects through him and only discounts were offered to the clients whereas the assessee admittedly stated in his letter dt. 23.01.2013 that they have deducted TDS on the payments which have been shown as “discount” in the next assessment year."
2. It was a common stand of the parties before the Bench that by way of the present appeal the challenge is posed to the addition of Rs.23,18,228/- by the Revenue and in view of Circular No.21/2015 dated 10th December, 2015 of CBDT the tax effect being less than Rs.10 lakh the appeal is not maintainable.
Having heard the submissions of the parties on this issue and perused the material on record, I find that the CBDT vide the aforesaid Circular dated 10.12.2015 has revised the monetary limit to Rs.10 lakh for filing the appeal by I.T.A .No.-39/Del/2015 the department before Income Tax Appellate Tribunal. Para 3 of the aforesaid Circular fixing the monetary limit has been made applicable vide para 10 retrospectively. Considering the settled legal precedent that the Board’s instructions or directions issued to the Income Tax Authorities u/s 268A of the Income Tax Act, 1961 are binding on the authorities, the departmental appeal is dismissed.
In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 25th July, 2016.
More judgments on Section 194H
- Mahesh Pulaveni, Adilabad vs ITO, Ward -11(1), HyderabadITA 991/HYD/2026[2018-19]Status: Disposed16 Oct 2026AY 2018-19
- M/S. Shree Laminators Ltd., Kolkata vs DCIT, Circle 4(4), KolkataITA 1534/KOL/2026[2011-2012]Status: Disposed15 Oct 2026AY 2011-2012
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
- Shobha Sudamrao Tagad, Ahmednagar vs ITO WD-1, AhmednagarITA 311/PUN/2026[2023-24]Status: Disposed13 Oct 2026AY 2023-24
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