Itta/652/2015 Of Commissioner Of Income Tax (Tds) v. Hyderabad Race Club

THE HON’BLE SRI JUSTICE RAMESH RANGANATHANANDTHE HON’BLE SRI JUSTICE M.SATYANARAYANA MURTHY ITTA.No.652 & 658 of 2015 COMMON JUDGMENT:(Per the Hon’ble Sri Justice Ramesh Ranganathan)Heard Sri B.Narasimha Sarma, learned Senior StandingCounsel for Income Tax, and Sri S.Ravi, learned Senior Counsel-appearing on behalf of the respondentassessee and, with theirconsent, the writ petition is disposed of at the stage of admission.These two appeals are preferred by the Revenue against the orderspassed by the Income Tax Appellate Tribunal, Hyderabad. The Revenue raised a specific ground, before the Tribunal, thatthe Commissioner of Income Tax (Appeals), Hyderabad had erred in-granting the threshold limit of Rs.2,500/ on each transaction for the--assessment years 200708 and 200809, and in deleting the additionmade under Section 194BB of the Income Tax Act, 1961 (for short “theAct”).The Tribunal, however, proceeded on the premise that what wasdisallowed by the assessing authority was the aggregate of thetransactions; and held that it is only if each payment exceeds a sum of-Rs.2,500/ can tax be deducted at source and not otherwise. The question before the Tribunal was not whether tax deductionat source is applicable for each payment exceeding Rs.2,500/-, or-payments exceeding Rs.2,500/ in aggregate.What was put in issueby the Revenue before the Tribunal was that, even for each individual-payment exceeding Rs.2,500/, whether the assessee was entitled to-deduct Rs.2,500/ as the threshold limit, and deduct TDS only for thebalance.This question of law, though specifically raised by theRevenue before the Tribunal, has not even been considered, let aloneanswered.We consider it appropriate, therefore, to set aside theorders under appeal, and remand the matter to the Tribunal to examinethis question afresh in accordance with law. The appeals are, accordingly, disposed of.Miscellaneous petitions pending, if any, shall also stand disposed of. There shall beno order as to costs. ______________________________ (RAMESH RANGANATHAN, J) ___________________________________ (M.SATYANARAYANA MURTHY, J) 13[th] July 2016JSU THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN AND THE HON’BLE SRI JUSTICE M.SATYANARAYANA MURTHY JSU ITTA.No.652 & 658 of 2015 Date: 13.07.2016