ITO (TDS) (OSD) RG 2, MUMBAI vs. ORACLE FINANCIAL SERVICES SOFTWARE LTD, MUMBAI

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ITA 861/MUM/2014Status: DisposedITAT Mumbai27 January 2016AY 2003-042 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the tax effect of the disputed issues was below the revised monetary limit for filing appeals. 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 deleting additions made by the AO regarding TDS on rent paid to SEEPZ and payments made to Silverline Technologies Ltd. The tax effect on these issues was below the monetary limit prescribed by CBDT Circular No. 21 of 2015.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the tax effect is below the prescribed monetary limit for appeals to the ITAT.

Which sections of the Income-tax Act were involved?

Section 194,Section 194J,Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI

For Appellant: Shri Harsh Kapadia
For Respondent: Shri Nimesh Yadav, DR
Hearing: 27/01/2016Pronounced: 27/01/2016

O R D E R PER JASON P. BOAZ, AM :

The aforesaid appeal has been filed by the revenue against order dated 27.11.2013 passed by the CIT(A)-13, Mumbai for the assessment year 2003- 04, on the following grounds :- “

1. Grounds of Appeal : (i) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting addition made by the AO u/s. 201(1)/201(1A) in respect of TDS on rent paid to SEEPZ u/s. 194 of the I.T. Act, 1961. (ii) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting addition made by the AO in respect of payments made to Silverline Technologies Ltd. being fees for processional services as u/s. 194J(d) of the I.T. Act, 1961.

2. The appellant craves leave to add, amend, alter or modify any ground which may be necessary at the time of the hearing of the case or thereafter.

2 M/s. Oracle Financial Services Software Ltd.

3.

The order of the CIT(A) being erroneous be set aside and A.O’s order be restored.”

2.

At the outset, it was brought to the notice of the bench by both parties, that the tax effect on these disputed issues is Rs. 4,78,625/- which is much below the monetary limit of Rs. 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 Rs. 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 the revenue is not maintainable and is dismissed in limine.

Order pronounced in the open court on 27th January, 2016.

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