ACIT CIR 4(2), MUMBAI V. VIBRANT SECURITIES P.LTD, MUMBAI

ITA 1427/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2229 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2007-2008
• Appeal Filed On: 28-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI BEFORE SHRI D KARUNAKARA RAO, AM & SHRI SANJAY GARG , JM ITA NO.1427/MUM/2014 / ASSESSMENT YEAR - 2007-08 THE ACIT CIR. 4(2), MUMBAI VS VIBRANT SECURITIES P. LTD., 103- A, PODAR CHAMBERS, S A BRELVI ROAD, FORT, MUMBAI- 400 001. PAN AABCV8287E ( /APPELLANT) ( /RESPONDENT) APPELLANT BY : MS AMRITA SINGH RESPONDENT BY : NONE ! ' #$ / DATE OF HEARING :18.08.2015. %& ' #$ / DATE OF PRONOUNCEMENT : 27.11.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-8, MUMBAI, DATED 09.12.2013, DELETING TH E PENALTY OF RS.12,29,539/- LEVIED BY THE ASSESSING OFFICER U/S. 271(1)(C) OF THE ACT FOR A.Y. 2007-08. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE HAD FILED ITS RETURN OF INCOME ON 15.11.2007 DECLARING TOTAL INCOME AT RS.8 0,70,021/-. THE ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE ACT DET ERMINING THE TOTAL 2 ITA 1427/MUM/14 VIBRANT SECURITIES PVT. LTD. INCOME AT RS.1,35,77,875/-. THE ASSESSING OFFICER DISALLOWED TRANSACTION CHARGES AMOUNTING TO RS36,52,820/-, VSAT CHARGES OF RS.1,10,533/- AND LEASE LINE CHARGES OF RS.9,29,500/- UNDER SECTION 4 0(A)(IA) OF THE ACT AND LEVIED PENALTY OF RS.12,29,539/- U/S. 271(1)(C) OF THE ACT. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). 3. THE CIT(A) DELETED THE PENALTY OBSERVING THAT TH E ISSUE RELATING TO THE ALLOWABILITY OF THE EXPENSES IN RELATION TO TRANSAC TION CHARGES, VSAT CHARGES AND LEASE LINE CHARGES HAS BEEN A DEBATABLE ISSUE. THE HONBLE BOMBAY HIGH COURT IN THE CASE OF KOTAK SECURITIES LTD. 340 ITR 333 HAS HELD THAT TDS IS NOT DEDUCTIBLE IN CASE OF LEASE LINE CHARGES AND VSAT CHARGES; HOWEVER, TDS IS DEDUCTIBLE IN RELATION TO TRANSACTION CHARGE S. THE LEARNED CIT(A) HAS OBSERVED THAT THE ASSESSEE WAS UNDER BONA FIDE BELI EF THAT NO TDS WAS DEDUCTIBLE IN RELATION TO TRANSACTION CHARGES ALSO. HE FURTHER OBSERVED THAT THE ISSUE WAS A DEBATABLE ISSUE AND THE TRIBUNAL IN THE ASSESSEES OWN CASE IN THE IMMEDIATELY PRECEDING YEAR HAS DELETED THE D ISALLOWANCE IN RESPECT OF NON-DEDUCTION OF TDS IN RESPECT OF TRANSACTION CHAR GES. HE THEREFORE HELD THAT IT WAS NOT A CASE OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME BY THE ASSESSEE. 4. WE HAVE HEARD THE LEARNED DR AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. WE DO NOT FIND ANY INFIRMITY IN THE WELL -REASONED ORDER OF THE 3 ITA 1427/MUM/14 VIBRANT SECURITIES PVT. LTD. CIT(A) IN THIS RESPECT AND THE SAME IS ACCORDINGLY UPHELD. EVEN OTHERWISE, THE ASSESSEE HAS ALREADY SUFFERED THE DISALLOWANCE FOR NON-DEDUCTION OF TDS. THE EXPENDITURE INCURRED BY THE ASSESSEE HAS NOT BE EN DISPUTED BY THE REVENUE. HENCE, IT IS NOT A CASE OF FURNISHING INA CCURATE PARTICULARS OF INCOME OR CONCEALMENT OF INCOME. HENCE, THE PROVISI ONS OF SECTION 271(1)(C) ARE NOT ATTRACTED IN THIS CASE. WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE, IT IS ACCORDINGLY DISMISSED. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 27.11.201 5. SD/- SD/- (D KARUNAKARA RAO) (S ANJAY GARG) ACCOUNTANT MEMBER JUDICIA L MEMBER MUMBAI; '( DATED : 27 NOVEMBER, 2015. SA ()* ' #+, -),# /COPY OF THE ORDER FORWARDED TO : 1. /THE APPELLANT. 2. / THE RESPONDENT. 3. .# ( ) / THE CIT(A), MUMBAI. 4. .# / CIT 5. ,/0 # , , / DR, F BENCH, ITAT, MUMBAI ()* ! / BY ORDER, ! ,# # //TRUE COPY// / !1 2 (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI