THE ITO(TDS)-3, JAMNAGAR vs. SHRI NIRMAL RAJENDRA JAGETIYA, JAMNAGAR

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ITA 109/RJT/2019Status: DisposedITAT Rajkot14 September 2022AY 2014-154 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 held that the Revenue's appeal should be dismissed based on CBDT Circular No. 17/2019, which restricts appeals where the tax effect is below Rs. 50 lakhs. The present case did not fall under any exceptions.

What were the facts?

The Revenue appealed against an order of the CIT(A) concerning the failure to furnish a statutory declaration for TCS collection. The appeal was filed for the assessment year 2014-15.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal in light of the CBDT's monetary limit for filing appeals. The secondary issue concerned the assessee's default in not collecting TCS and furnishing declarations.

Which sections of the Income-tax Act were involved?

Section 206C(6),Section 206C(6A),Section 206C(1A),Section 206C(1B),Section 268A

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 Dushyant Maharshi, A.R
For Respondent: Shri B.D. Gupta, Sr. D.R

PER BENCH:- This Revenue’s appeal for A.Y. 2014-15, arises from order of the CIT(A), Jamnagar dated 19-02-2019, in proceedings under section 206C(6)/206C(7) of the Income Tax Act, 1961; in short “the Act”.

2.

The Revenue has raised following ground of appeal:-

“1. The Ld. CIT(A) has erred in law and on facts in directing not to treat the assessee as assessee in default under section 206C(6A) of the Income-tax Act when the said assessee has failed to furnish the I.T.A No. 109/Rjt/2019 A.Y. 2014-15 Page No 2 statutory declaration under section 206C(1A) within the time period prescribed under section 206C(1B) of the Act read with Rule 37C of the Income-tax Act, 1962. 2. The Ld.CIT(A) has erred in law and on facts in directing not to treat the assessee in default for non collection of TCS on sale of scrap to manufacturer where Form No.27C has not been filed with the department and not furnished before the specified authorities as per prescribed manner in the Income-tax Act, 1961. 3. On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the Assessing Officer.

4.

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

5.

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

3.

At the outset, after going through the grounds of appeal and the impugned orders of the Revenue authorities below, a query was raised by the Bench as to applicability and maintainability of the appeal filed by the Revenue in view of recent CBDT Circular No. 17/2019 dated 8.8.2019 restricting the filling of the appeal by the Revenue where the tax effect is below Rs.50 lakhs, the ld. DR did not dispute the same and submitted that the issue is left to the Tribunal to be decided in accordance with law.

4.

We find that the appeal of the Revenue is presented on 7.5.2019. On 8.8.2019 the CBDT has issued Instructions bearing No. 17 of 2019 prohibiting its subordinate authorities from filing of the appeal to the Tribunal against the order of the CIT(A) where the tax effect by virtue of the I.T.A No. 109/Rjt/2019 A.Y. 2014-15 Page No 3 relief given by the CIT(A) is less than Rs.50 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, “tax effect” on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.50 lakhs. Further, the case of the Revenue does not fall within the ambit of exceptions provided in the Circular. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.

However, it is observed that in case on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.

5.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 14-09-2022 (WASEEM AHMED) (SIDHHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 14/09/2022

I.T.A No. 109/Rjt/2019 A.Y. 2014-15 Page No 4 आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:-

1.

Assessee

2.

Revenue

3.

Concerned CIT

4.

CIT (A)

5.

DR, ITAT, Ahmedabad

6.

Guard file. By order,

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