THE ITO (TDS)-2, RAJKOT, RAJKOT vs. SMT. SAPNABEN VIJAYBHAI SHRIMANKAR, RAJKOT

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ITA 191/RJT/2022Status: DisposedITAT Rajkot23 August 2023AY 2015-16Bench: SHRI WASEEM AHMED (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal. This was based on the applicability of CBDT Circular No. 17 of 2019, which mandates dismissal of pending appeals by the Revenue where the tax effect does not exceed Rs. 50 Lakhs.

What were the facts?

The Revenue appealed against the CIT(A)'s order which held that the assessee was not required to deduct TDS under Section 194-IA on the payment for acquisition of immovable property. The Revenue's grounds of appeal challenged this decision, citing the property value exceeding Rs. 50,00,000/-.

What were the issues?

Whether the assessee was obligated to deduct TDS under Section 194-IA on the purchase of immovable property. Applicability of CBDT Circular No. 17 of 2019 to pending appeals based on tax effect.

Which sections of the Income-tax Act were involved?

Section 194-IA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI WASEEM AHMED & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Abhimanyu Singh, Sr. D.R
Hearing: 10.08.2023Pronounced: 23.08.2023

This appeal has been filed by the Revenue against the order passed by the Ld. Commissioner of Income Tax(Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre, (in short “NFAC”), in Order No. ITBA/NFAC/S/250/2021-22/1042314619(1) vide order dated 31.03.2022 passed for Assessment Year 2015-16.

2. The Revenue has taken the following grounds of appeals:-

“1. The Ld. CIT(A) has erred in law as well on facts of the case in holding that assessee is not required to deduct Tax at source u/s 194 IA

ITO vs. Smt. Sapnaben Vijaybhai Shrimankar Asst.Year –2015-16 - 2 - on payment of Rs. 48,75,000/- made to seller for acquisition of immovable property.

2.

The Ld. CIT(A) has erred in law as well on facts of the case in holding that the assessee should not be treated as assessee in default for non-deduction of tax at source u/s 194 IA of Act even when the value of property is in excess of Rs. 50,00,000/- and the provision doesn’t discuss anything about no. of transferor and transferor.

3. The Ld. CIT(A) has erred in law as well as on fact that the assessee was not under obligation to deduct TDS as the property acquired is capital asset and the provision of section 194IA is squarely applicable on the case.

4. On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have decided the issue under reference, in the light of provision of section 194IA which doesn’t discriminate in number of transferor or transferee.

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

6.

It is, therefore, prayed that the order of Ld. CIT(A) may be cancelled and that of the Assessing Officer may be restored to the above fact.”

3.

At the time of hearing, it was submitted by the Ld. AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax

ITO vs. Smt. Sapnaben Vijaybhai Shrimankar Asst.Year –2015-16 - 3 - effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

4.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner.

5.

In the result, the appeal of the Revenue is dismissed. This Order pronounced in Open Court on 23/08/2023

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