ADDL CIT RG 4(1), MUMBAI V. DEUTSCHE EQUITIES INDIA P.LTD, MUMBAI

ITA 3873/MUM/2012

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income-tax (Appeals) - 15, Mumbai, concerning the assessment year 2007-08. The Revenue challenged the CIT(A)'s decisions on several grounds, including the applicability of section 14A read with rule 8D, disallowance of depreciation on a BSE Membership card, and deletion of Transfer Pricing adjustments related to Back Office Support Services. However, the appeal was dismissed as infructuous due to the low tax effect involved, which was below the threshold set by the CBDT for filing appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474431 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2007-2008
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRISHNA KUMAR
• Assessee Lawyers: DIGVIJAY AWARI
• Keywords: Set aside; Transfer pricing; Depreciation; Tax effect
• Section: 14A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI SUNIL KUMAR SINGH (JUDICIAL MEMBER) ITA No. 3873/MUM/2012 Assessment Year: 2007-08 Dy. CIT-4(1), 6th floor, Room No. 640, Aayakar Bhavan, Mumbai-20. Vs. M/s Deutsche Equities P. Ltd., Grd. Floor, D.B. House, Hazarimal Somani Marg, Fort, Mumbai-400001. PAN NO. AAACJ 1395 E Appellant Respondent Assessee by : Mr. Digvijay Awari Revenue by : Mr. Krishna Kumar, Sr. DR Date of Hearing : 30/01/2025 Date of pronouncement : 30/01/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the Revenue is directed against order dated 28.03.2012 passed by the Ld. Commissioner of Income-tax (Appeals) – 15, Mumbai [in short ‘the Ld. CIT(A)’] for assessment year 2007-08, raising following grounds: 1. \"On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the provisions of section 14A r.w.r 8D is not applicable for AY 2. \"On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the disallowance of depreciation on BSE Membership card\". 3. \"On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the Transfer Pricing adjustment in respect of Back Office Support Services.\" 4. \"On the facts and in the circumstances of the case, the impugned order of the Ld. CIT(A) is contrary to law to be set aside and that of the Assessing Officer be r 2. At the outset, the Ld. Departmental Representative (DR) submitted that tax effect involved in the threshold limit of Rs.60,00,000/ of Direct Taxes (CBDT) vide Circular No. 09/2024 New 17.09.2024 for filing appeal to the Income and therefore, this appeal is deemed to be withdrawn. The Ld. Authorized Representative (AR) did not object. 2.1 In view of the appeal withdrawn by the Revenue dismissed as infructuous. 3. In the result, the appeal of the Revenue is dismissed as infructuous. Order pronounced in the open Court on Sd/- (SUNIL KUMAR SINGH JUDICIAL MEMBER Mumbai; M/s Deutsche Equities P. Ltd. ITA No. 3873/MUM/2012 1. \"On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the provisions of section 14A r.w.r 8D is not applicable for AY 2007-08.\" 2. \"On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the disallowance of depreciation on BSE Membership card\". 3. \"On the facts and in the circumstances of the case and in law, the Ld. d in deleting the Transfer Pricing adjustment in respect of Back Office Support Services.\" 4. \"On the facts and in the circumstances of the case, the impugned order of the Ld. CIT(A) is contrary to law to be set aside and that of the Assessing Officer be restored. At the outset, the Ld. Departmental Representative (DR) submitted that tax effect involved in the present appeal is below the threshold limit of Rs.60,00,000/- prescribed by the Central Board of Direct Taxes (CBDT) vide Circular No. 09/2024 New 17.09.2024 for filing appeal to the Income-tax Appellate Tribunal and therefore, this appeal is deemed to be withdrawn. The Ld. Authorized Representative (AR) did not object. In view of the appeal withdrawn by the Revenue d as infructuous. In the result, the appeal of the Revenue is dismissed as nounced in the open Court on 30/01/2025. - Sd/ (SUNIL KUMAR SINGH) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER M/s Deutsche Equities P. Ltd. 2 ITA No. 3873/MUM/2012 1. \"On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the provisions of section 14A r.w.r 8D is 2. \"On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the disallowance of depreciation on BSE 3. \"On the facts and in the circumstances of the case and in law, the Ld. d in deleting the Transfer Pricing adjustment in respect of Back 4. \"On the facts and in the circumstances of the case, the impugned order of the Ld. CIT(A) is contrary to law to be set aside and that of the At the outset, the Ld. Departmental Representative (DR) appeal is below the prescribed by the Central Board of Direct Taxes (CBDT) vide Circular No. 09/2024 New Delhi dated tax Appellate Tribunal and therefore, this appeal is deemed to be withdrawn. The Ld. In view of the appeal withdrawn by the Revenue, same is In the result, the appeal of the Revenue is dismissed as /01/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER Dated: 30/01/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// M/s Deutsche Equities P. Ltd. ITA No. 3873/MUM/2012 Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai M/s Deutsche Equities P. Ltd. 3 ITA No. 3873/MUM/2012 BY ORDER, (Assistant Registrar) ITAT, Mumbai "