ACIT 25(2), MUMBAI vs. PRITI R. JAGGI, MUMBAI

O R D E R

PER N.K. BILLAIYA, AM:

2. The grounds raised by the Revenue read as under:

(1) On the facts and in the circumstances of the case, and in law, the Id.CIT(A) erred in deleting the addition made by the Assessing Officer on account of disallowance of commission expenses u/s.40(a)(ia) of the Act without appreciating the fact that the assessee has credited the commission on 30.06.2007 whereas the provisions of the section 194H of the Act have been amended w.e.f. 01.06.2007.

(2) On the facts and in the circumstances of the case, and in law, the Id.CIT(A) erred in deleting the addition partly made by the Assessing Officer on account of disallowance of payment made to M/s.Reliable Travels and Cargo Pvt. Ltd. for non-deduction of TDS without appreciating the fact that the payment made to M/s.Reliable Travels and Cargo Pvt. Ltd. is in the nature of contract payment and duly covered as per provisions of section 194C of the Act.

(3) On the facts and in the circumstances of the case and in law, the Id.CIT(A) erred in deleting the addition made by the Assessing Officer on account of disallowance of interest for non-deduction of TDS without appreciating the fact that the provisions of section 194A(3) of the Act are in the nature of statutory obligation on the part of the assessee.

(4) On the facts and in the circumstances of the case and in law, the Id.CIT(A) erred in deleting the addition made by the Assessing Officer on account of disallowance out of foreign travelling expenses without appreciating the fact that the assessee incurred these expenses on the family members of employees of ONGC which is not allowable.

3. Before going into the merits of the case, let us first consider CBDT’s latest instructions vide Circular No.21/2015 dated 10/12/2015, the relevant portion of which read as under:-

“ Circular No. 21/2015 F No 279/Misc. 142/2007-ITJ (Pt)

New Delhi the 10th December, 2015

Subject: Revision of monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court - measures for reducing litigation - Reg –

Reference is invited to Board's instruction No 5/2014 dated 10.07.2014 wherein monetary limits and other conditions for filing departmental appeals (in Income-tax matters) before Appellate Tribunal and High Courts and SLP before the Supreme Court were specified.

S. Appeals in Income-tax Monetary Limit No matters (in Rs) 1. Before Appellate Tribunal 10,00,000/- 2. Before High Court 20,00,000/- 3. Before Supreme Court 25,00,000/-

It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.”