Income Tax Appellate Tribunal - Jaipur
Dcit (Tds), Jaipur vs Om Metals Infra Projects Ltd., Jaipur on 7 June, 2017
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM
vk;dj vihy la-@ITA No. 53/JP/2017
fu/kZkj.k o"kZ@Assessment Year : 2010-11.
Dy. Commissioner of Income-tax, cuke M/s Om Metals Infra Projects Ltd.,
(TDS), Jaipur. Vs. OM Tower, Church Road, M.I. Road,
Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. JPRO 01876 A
vihykFkhZ@Appellant izR;FkhZ@Respondent
jktLo dh vksj ls@ Revenue by: Shri R.A. Verma (Addl. CIT)
fu/kZkfjrh dh vksj ls@ Assessee by : Shri B.V. Maheshwari (CA)
lquokbZ dh rkjh[k@ Date of Hearing : 30.05.2017.
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 07.06.2017
vkns'k@ ORDER
PER SHRI KUL BHARAT, JM.
This Appeal by the Revenue is directed against the order of Ld. CIT (A)-III, Jaipur dated 28/10/2016 pertaining to A.Y. 2010-11.
The Revenue has raised the following grounds of appeal :-
"1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and fact by considering the claims of assessee with respect of non deduction of TDS on transportation expense, however, in fact, assesee is not involved in the business of plying, hiring or leasing good, which are requisite conditions for the application of section 194 (C) of the IT Act, 1961.
2. On the facts and in the circumstances of the case, whether the Ld. CIT(A) is justified in considering the assessee's claim in respect of declaration in form 27C which was required to be received at the time of purchase of goods by buyer and copy of declaration should be deposited by responsible person with competent Authority on the specified date as required by Rule 37C and the assessee failed to comply with such legal requirements.
3. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and fact by giving specific direction on account of demand 2 ITA No. 53/JP/2017 M/s Om Metals Infra Projects Ltd., Jaipur.
raised u/s 206C(7) for chagrining interest violates the provision of section 206C(7) of the Act."
2. At the outset, the Ld. Counsel for the assessee submitted that the appeal is not maintainable on account of low tax effect. Ld. Counsel for the assessee submitted that the AO made addition on account of non-collection of TDS. He drew our attention to the Assessment Order in support of the contention that the total demand raised in respect of interest and the tax was Rs. 14,63,407/- out of which Rs. 5,96,258/- was the interest. If the interest is reduced, the tax effect would be lesser than the prescribed limit of 10 lakhs. Ld. DR has supported the order of the AO. However, he did not contradict the submissions of the Ld. Counsel for the assessee.
3. We have heard the rival contentions and perused the materials available on record. It is observed that the demand/ tax effect in the Revenue's appeal in question is below Rs. 10.00 lacs . Under the powers vested by sec. 268A(1) of the I T Act, CBDT issued CircularNo.21 of 2015 dated 10.12.2015(F No. 279/Misc. 142/2007-ITJ(Pt) instructing the authorities below departmental appeal should not be filed before ITAT where the demand/tax effect does not exceed Rs.10 lacs. The circular is specifically mentioned to be applicable for all pending appeals.
3.1 Subject to some exceptions, it is further directed by CBDT that all the departmental appeals pending before ITAT where the demand/tax effect is less than 10 lacs should be either withdrawn or not pressed by the departmental representatives.
3ITA No. 53/JP/2017
M/s Om Metals Infra Projects Ltd., Jaipur.
3.2 The present appeal is not covered by any exceptions mentioned in the said CBDT circular. Since the tax demand in dispute in this departmental appeal is below the limit set out by CBDT for the appeal the same is not maintainable in view of fore going discussion. Therefore, the present appeal is dismissed as non-maintainable on account of low tax effect.
4. In the result, appeal of the Revenue is dismissed.
Order is pronounced in the open court on Wednesday, the 07th day of June 2017.
Sd/- Sd/-
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( BHAGCHAND) ( KUL BHARAT )
ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member
Jaipur
Dated: 07/06/2017
Pooja/
vkns'k dh izfrfyfi vxzfs "kr@Copy of the order forwarded to:
1. The Appellant- Dy. Commissioner of Income-tax, (TDS), Jaipur.
2. The Respondent - M/s Om Metals Infra Projects Ltd.,M.I. Road, Jaipur.
3. The CIT(A).
4. The CIT,
5. The DR, ITAT, Jaipur
6. Guard File (ITA No. 53/JP/2017) vkns'kkuqlkj@ By order, lgk;d iathdkj@ Assistant. Registrar