DCIT 22(2), NAVI MUMBAI vs. VENKATESH SANJEEV KAMATH, MUMBAI

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ITA 7727/MUM/2012Status: DisposedITAT Mumbai03 May 2016AY 2009-102 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the tax effect of the disputed issue was below the monetary limit prescribed by CBDT Circular No. 21 of 2015 for filing appeals before the ITAT. Therefore, the appeal filed by the Revenue was not maintainable.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order allowing the assessee's appeal regarding disallowances made under Section 40(a)(ia) for non-deduction of TDS on freight charges and export commission. The disallowances were made for payments to non-resident entities.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the ITAT given the tax effect is below the prescribed monetary limit as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, F Bench, Mumbai

Before: Shri Jason P. Boaz & Shri Sandeep GosainShri Venkatesh Sanjeev Kamath

For Appellant: Shri R.A. Dyani
For Respondent: Shri Vijay C. Kothari
Hearing: 03.05.2016Pronounced: 03.05.2016

The aforesaid appeal has been filed by the Revenue against the order dated 25.12.2012 passed the CIT(A)-33, Mumbai in respect of the order of assessment passed under section 143(3) for A.Y. 2009-10 on the following grounds: - “

1. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in allowing the assessee's appeal with regard to disallowance of Rs.18,92,931/- u/s 40(a)(ia) of the Act made by the AO with regard to non-deduction of TDS on freight charges paid to non-resident shipping company.

2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that M/s.EMU Lines Pvt. Ltd has been covered by the tower deduction certificate issued by the department even though the certificate has not mentioned the name of M/s. EMU Lines Pvt. Ltd.

3. On the facts and circumstances of the case and in law, the ld.CIT(A) erred in allowing the assessee's appeal with regard to disallowance of Rs.15,40,906/- u/s.40(a)(ia) of the Act made by the AO with regard to payment of export commission to non- resident agents.

Shri Venkatesh Sanjeev Kamath 4. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in holding that no income is accrued or arising to the non-resident to whom the export commission has been paid and hence, no disallowance u/s. 40(a)(ia) of the Act is necessary. 5 The appellant prays that the order of the CIT(A) on the above grounds be reversed and that of the Assessing Officer be restored.

6.

The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary.”

2.

At the outset, it is noticed that the disputed issue is only for `17,55,318/- i.e. `15,40,906 + `2,14,412) and the tax effect on this amount is below the monetary limit of `10 lakhs. As per the latest CBDT Circular No. 21 of 2015 dated 10th December, 2015, new guidelines of monetary limit for filing of appeals by the Department has been issued, whereby the tax effect for filing of appeal before the ITAT has been prescribed at `10 lakhs. In the said circular, it has been specifically clarified that the said instruction will apply retrospectively to all the pending appeals. Accordingly, the appeal filed by Revenue is not maintainable and is dismissed in limine. Order pronounced in the open court on 3rd May, 2016. Sd/- Sd/- (Sandeep Gosain) (Jason P. Boaz) Judicial Member Accountant Member

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