ITO TDS 1(1)(3), MUMBAI vs. BEVENUE INFRA PROJECTS P.LTD, MUMBAI

This appeal filed by the Revenue on 24.4.2015 is against the order of the CIT (A)-59, Mumbai dated 25.2.2015 for the assessment year 2009-2010. In this appeal, Revenue raised the following solitary ground which reads as under:- “On the facts and in the circumstances of the case and in law, the Ld CIT (A) erred in deleting the short deduction u/s 201(1) and interest u/s 201(1A), holding that the assessee was liable to deduction tax u/ 194C and not u/s 194J of the Act without appreciating the correct nature of the services and the fact that the books of account of the assessee showed the fees as “professional fees” paid for the services rendered by Shri Ajay Phansekar Proprietor of M/s. Swamini Construction.”

At the outset, Ld Counsel for the assessee briefly narrated the facts of the case and demonstrated that the tax effect involved in this case is Rs. 3,66,649/- ie below Rs. 10 lakhs. Therefore, this case is covered by the CBDT Circular No.21/2015, dated 10.12.2015 which is relevant for the proposition that the appeals filed by the Revenue with a tax effect of Rs. 10 lakhs and below are to be either dismissed by the Tribunal as not maintainable or not pressed by the Revenue.