DCIT 4(1), MUMBAI V. CALVIN SHARES & SECURITIES P.LTD, MUMBAI

ITA 1523/MUM/2012

• Counselvise Citation: 152319914 RSA 2012
• Duration Of Justice: 1 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 29-08-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 05-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 115JB

Judgement Text

M/S CALVIN SHARES & SECURITIES PVT. LTD. - 1 - VK;DJ VIHYH; VF/KDJ.K LH U;K;IHB EQACBZ ESAA IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUM BAI JH ,P- ,Y- DKJOK] V/;{K ,OA JH JKTSUNZ FLAG YS[KK L NL; DS LE{K BEFORE HONBLE PRESIDENT SHRI H.L. KARWA AND SHRI R AJENDRA SINGH ACCOUNTANT MEMBER VK;DJ VIHY LA[;K /ITA NO.1523/MUM/2012 FU/KKZJ.K O'KZ @ ASSESSMENT YEAR: - 2008-09 DCIT -4(1), 6 TH FLOOR, ROOM NO. 640, AAYKAR BHAVAN MUMBAI 20. CUKE@ VS. M/S CALVIN SHARES & SECURITIES PVT. LTD. 107, NIRANJAN, 99, MARINE DRIVE MUMBAI -400 002. PAN:- AABCC2599N VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT VIHYKFKHZ DH VKSJ LS @ APPELLANT BY SHRI UDAYA BHASKAR JAKKE IZR;FKHZ DH VKSJ LS @ RESPONDENT BY SHRI A.L. SHARMA VKNS'K@ VKNS'K@ VKNS'K@ VKNS'K@ ORDER PER RAJENDRA SINGH THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORD ER DATED 2.12.2011 OF CIT(A) FOR THE ASSESSMENT YEAR 2008-09. THE ONLY DISPUTE RAISED BY THE REVENUE IN THIS APPEAL IS REGARDING ALL OWABILITY OF DEDUCTION ON ACCOUNT OF REBATE U/S 88E WHILE COMPUTI NG THE BOOK PROFIT U/S 115JB OF THE INCOME TAX ACT. LQUOKBZ DH RKJH[K @ DATE OF HEARING 29-08-2013 ?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT 4-09-2013 M/S CALVIN SHARES & SECURITIES PVT. LTD. - 2 - 2. THE FACTS IN BRIEF ARE THAT THE AO DURING THE AS SESSMENT PROCEEDINGS CALCULATED REBATE ON ACCOUNT OF SECURITY TRANSACTIONS TAX (STT) U/S 88E OF THE INCOME TAX ACT AT RS. 6,16,062 /-. HOWEVER, WHILE COMPUTING THE BOOK PROFIT U/S 115JB OF THE INCOME TA X ACT, THE SAID REBATE WAS NOT ALLOWED BY THE AO. 3. THE ASSESSEE DISPUTED THE MATTER BEFORE CIT(A) AN D CIT(A) FOLLOWING THE DECISION OF BANGALORE BENCH OF TRIBUNA L IN CASE OF M/S HORIZON CAPITAL LTD. VS. CIT DATED 16.7.2010 ALLOWE D THE CLAIM OF THE ASSESSEE, AGGRIEVED BY WHICH THE REVENUE IS IN APPEAL BEFORE TRIBUNAL. 4. BEFORE US THE LEARNED AR FOR THE ASSESSEE SUBMITTED THAT THE ISSUE WAS COVERED IN FAVOUR OF THE ASSESSEE BY THE JU DGMENT OF HONBLE HIGH COURT OF KARNATAKA IN CASE OF CIT VS. HORIZON CA PITAL LTD. (245 CTR 601) AND ALSO BY THE JUDGMENT OF HONBLE HIGH C OURT OF DELHI IN CASE OF MBL AND COMPANY LTD. (259 CTR 505). THE LEA RNED DR ON THE OTHER HAND PLACED RELIANCE ON THE ORDERS OF ASSESSIN G OFFICER. 5. WE HAVE PERUSED THE RECORDS AND CONSIDERED THE MATT ER CAREFULLY. THE DISPUTE IS REGARDING ALLOWABILITY OF DE DUCTION ON ACCOUNT OF REBATE U/S 88E RELATING TO STT WHILE COMPUTING THE BOOK PROFIT U/S 115JB OF THE INCOME TAX ACT. WE FIND THAT THE ISSUE HAS ALREADY BEEN EXAMINED BY THE HONBLE HIGH COURT OF KARNATAKA IN C ASE OF CIT VS. HORIZON CAPITAL LTD. (SUPRA) IN WHICH IT HAS BEEN HE LD THAT SINCE THE REBATE U/S 88E IS ALLOWED IN RESPECT OF TAX CHARGEABLE ON TOTAL INCOME, THERE WAS NO REASON TO DENY THE BENEFIT WHILE COMPUT ING THE TAX U/S 115JB. THE SAID JUDGMENT OF HONBLE HIGH COURT OF KA RNATAKA WAS FOLLOWED BY THE HONBLE HIGH COURT OF DELHI IN CASE OF MBL AND COMPANY LTD. (SUPRA). NO CONTRARY JUDGMENT OF JURISDIC TIONAL HIGH M/S CALVIN SHARES & SECURITIES PVT. LTD. - 3 - COURT OF APEX COURT HAS BEEN BROUGHT TO OUR NOTICE BY THE LEARNED DR. THEREFORE, WE SEE NO INFIRMITY IN THE ORDER OF CIT( A) ALLOWING THE CLAIM OF THE ASSESSEE. THE ORDER OF CIT(A) IS ACCORD INGLY UPHELD. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 4-9-2013 SD/- SD/- (H.L. KARWA) (RAJENDRA SINGH) HONBLE PRESIDENT ACCOUNTANT MEMBER SKS SR. P.S, MUMBAI DATED 4.9.2013 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI