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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Asstt.Year :2012-13 ITO, TDS-1 Aarav Reality Private Limited Vadodara. Vs 201, Payal Complex Opp: M.S. University Sayajiganj Vadodara 390 005. PAN : (Applicant) (Responent) : Shri Hemant Suthar, AR Assessee by : Shri Atul Pandey, Sr.DR Revenue by सुनवाई क� तारीख/Date of Hearing : 30/07/2024 घोषणा क� तारीख /Date of Pronouncement: 23/08/2024 आदेश आदेश/O R D E R आदेश आदेश
The present appeal has been filed by the Revenue against order passed by the Commissioner of Income Tax(Appeals), Addl/JCIT(A)-2, Coimbatore under section 250 of the Income Tax Act, 1961 dated 07.03.2024 pertaining to Asst.Year 2012-13.
The grounds raised are as under:
At the outset itself, the ld.counsel for the assessee pointed out that the tax effect involved in the present appeal of the Department was well below the limit Rs.50 lakhs prescribed by CBDT circular dated 8.8.2019 for filing appeal by Revenue before the ITAT and the appeal of the Revenue therefore needs to be dismissed.
He further contended that even on merits, the appeal of the Revenue needs to be dismissed since the order passed by the AO in the present case u/s 201/201(1A) of the Act, holding the assessee to be in default for not having deducted TDS on amounts received by it by way of loan from M/s Aarav Reality P.Ltd., treating it as deemed dividend in its hand in terms of provisions of section 2(22)(e) of the Act ,was overturned by the ld.CIT(A) deleting the addition made on account of deemed 3 dividend . It was also pointed out by the ld.counsel for the assessee that the order of the ld.CIT(A) deleting the addition made in the hands of the assessee of deemed dividend had been confirmed by the ITAT in its order passed in dated 20.5.2024. A copy of the order was placed before me.
He, therefore, stated that the impugned order of the ld.CIT(A) setting aside the order passed by the AO treating the assessee to be in default ,is to be confirmed even on merits.
The ld.DR fairly agreed with the above submissions of the ld.counsel for the assessee.
In view of the above, the appeal filed by the Revenue is held to be non-maintainable and dismissed on both counts, viz.
(i) on account of tax effect involved in the appeal admittedly being below the limit prescribed by CBDT vide its circular dated 8.8.2019 prohibiting the Revenue to file appeal before the ITAT where tax effect involved is less than Rs.50 lakhs, and,
(ii) even on merits of the case, since the amount treated as deemed dividend by the AO on which the assessee was held liable to deduct TDS, was held to be not in the nature deemed dividend by the ld.CIT(A), and this order was confirmed by the ITAT. Therefore there arises no cause of Thus, the grounds raised by the Revenue are dismissed.
In the result, the appeal of the Revenue is dismissed.
Order pronounced in the Court on 23rd August, 2024 at Ahmedabad.