DCIT 4(1), MUMBAI V. DHYAN STOCK BROKING P.LTD, MUMBAI

ITA 1589/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100548 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 16-04-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 06-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Assessee Lawyers: ANUJ KISNADWALA
• Keywords: Transactions in derivatives; Cost of acquisition
• Section: 143(3); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI R.C . SHARMA , ACCOUNTANT MEMBER AND SHRI SANJAY GARG , JUDICIAL MEMBER ITA NO. 1589 / MUM ./ 2012 ( ASSESSMENT YEAR : 20 08 09 ) DY. COMMISSIONER OF INCOME TAX CIRCLE 4(1), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .. APPELLANT V/S M/S. DHYAN STOCK BROKING PVT. LTD. SHOP NO.1/C, 29 24 TAMARIND LANE, FORT MUMBAI 400 023 PAN AAACD8594M .... RESPONDENT REVENUE BY : SHRI LOVE KUMAR ASSESSEE BY : SH RI ANUJ KISNADWALA DATE OF HEARING 14 .0 5 .2015 DATE OF PRONOUNCEMENT 14 .05.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER TH E PRESENT APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 2 ND DECEMBER 2011 , PASSED BY THE LE ARNED COMMISSIONER (APPEALS) 9 , MUMBAI , FOR THE ASSESSMENT YEAR 2 008 09 . THE GROUNDS RAISED BY THE REVENUE ARE AS FOLLOWS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW HAS ERRED IN ALLOWING PAYMENT OF ` 7.20 LAKH TO JOBBERS DISALLOWE D UNDER SECTION 40(A)(IA), WHEN NO TDS WAS DEDUCTED. M/S. DHYAN STOCK BROKING PVT. LTD. 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW HAS ERRED IN ALLOWING TO TAKE COST OF THE ACQUISITION OF THE BSE CARD AS COST OF ACQUISITION OF BSE SHARE UNDER THE PROVISION OF SECTION 5 5(2)(AB) OF THE ACT. 2. THE ASSESSEE, IN THE PRESENT CASE, IS ENGAGED IN THE BUSINESS OF SHARE BROKING AND IS A MEMBER OF THE BOMBAY STOCK EXCHANGE LIMITED (BSE) AND A SEBI REGISTERED STOCK BROKER. IT FILED ITS E RETURN OF INCOME FOR THE YEAR UNDER CONSIDE RATION ON 21 ST SEPTEMBER 2008, DISCLOSING TOTAL INCOME OF ` 51,34,070. THE ASSESSING OFFICER COMPLETED ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ) DETERMINING THE TOTAL INCOME AT ` 2,94,52,850, ON 21 ST DECEMBER 2010. 3. THE FACTS, APROPOS GROUND NO.1, ARE THAT THE ASSESSEE HAD MADE PAYMENT TO JOBBERS OF ` 7,20,000. THE ASSESSING OFFICER ASKED THE ASSESSEE TO SUBMIT THE EXACT NATURE OF JOBBING ACTIVITY AND ALSO SUBMIT DETAILS OF PAYMENTS MADE TO THE JOBBERS AND ALSO EXPLAI N AS TO WHETHER THE TAX WAS DEDUCTED AT SOURCE UNDER SECTION 194C OF THE ACT OR NOT. THE ASSESSING OFFICER, HOWEVER, REJECTED THE SUBMISSIONS PRIMARILY ON THE FOLLOWING GROUNDS: I. JOBBING IS AN ACTIVITY INVOLVING PURCHASE AND SALE OF SCRIPS / DERI VATIVES W ITHIN A SHORT PERIOD OF TIME, WITH A VIEW TO SQUARING THEM OFF WITHIN THE SAME SETTLEMENT PE RIOD, WITHOUT TAKING A DELIVERY; II. ARBITRAGE IS A SPONTANEOUS PURCHASE AND SALE OF SCRIPS EITHER IN TWO DIFFERENT EXCHANGES OR TWO DIFFERENT SEGMENTS OF THE SAME MAR KET WITH A VIEW TO EARN PROFIT M/S. DHYAN STOCK BROKING PVT. LTD. 3 DUE TO PRICE VARIATIONS. III. A JOBBING/ARBITRAGE IS A SPECIALIZED SKILL WHICH REQUIRES UNDERSTANDING OF THE MARKETS, RESEARCH AND MOVEMENT OF SCRIPS OVER A PERIOD OF TIME ANS SPONTANEITY WITH PRESENCE OF MIND TO BUY AND SELL AT THE SPUR OF THE MOMENT. IV. SINCE IT IS A VERY SPECIALIZED SKILL THE JOBBERS/ARBITRAGERS ARE HANDSOMELY COMPENSATED. FURTHER AS THE PROFITABILITY WILL DEPEND ON THE MOTIVATION OF THE JOBBER, HE IS GENERALLY PAID A PERCENTAGE OF NET PROFIT GENERATED, AS CO NSIDERATION. V. THE JOBBERS/ARBITRAGERS DO NOT OPERATE UNDER THEIR OWN CODE. FOR THE PURPOSE OF ENTERING INTO ANY TRANSACTION THEY USE THE CODE NUMBER OF THE BRO KER/ASSESSEE FOR WHOM THEY WORK. VI. GENERALLY ALL THE POSITIONS ARE CLOSED AT THE END OF THE DAY, NO DELIVERIES ARE TAKEN OR GIVEN. VII. THE MARGINS FOR TRADING AND TAKING POSITIONS IN THE MARKET ARE PROVIDED BY THE PRINCIPAL. DUE TO THE MULTIPLICITY AND HUGE VOLUME OF TRANSACTIONS GENERALLY THE MARGINS REQUIRED ARE ALSO VERY LARGE. VIII. THE BOLT/ACCESS TO E XCHANGE AND THE OFFICE SPACE IS PROVIDED BY THE MEMBER. THE ASSESSING OFFICER HELD THAT THE PAYMENTS MADE ARE IN LIEU OF SERVICES RENDERED FOR CARRYING OUT CERTAIN WORK AND THE PAYMENTS MADE FALLS WITHIN THE MEANING OF SECTION 194C. SINCE THE ASSESSEE HAS NOT DEDUCTED THE TAX, THEREFORE, THE TOTAL AMOUNT PAID FOR ` 7.20 LAKH WAS DISALLOWED. 4. THE LEARNED CIT(A ) REVERSED THE ORDER OF THE ASSESSING OFFICER AND ALLOWED THE CLAIM OF THE ASSESSEE WHILE FOLLOWING THE ORDERS OF THE TRIBUNAL, MUMBAI BENCH, IN D CIT V/S M/S. ASSET ALLIANCE SECURITIES PVT. LTD. , ITA NO.1488/MUM./2009, ORDER DATED 16 TH JULY 2010, AND M/S. M/S. DHYAN STOCK BROKING PVT. LTD. 4 TOTAL SECURITIES LTD. V/S DCIT, IN ITA NO.7123/MUM./ 2008, ORDER 31 ST DECEMBER 2010. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 5. TH E LEARNED DEPARTMENTAL REPRESENTATIVE, BEFORE US, RELIED ON THE ORDER OF THE ASSESSING OFFICER, WHEREAS, THE LEARNED COUNSEL FOR THE ASSESSEE SUPPORTED THE ORDER SO PASSED BY THE LEARNED CIT(A). 6. WE HAVE CONSIDERED THE SUBMISSIONS OF RIVAL PARTIES AND HAVE ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. FROM THE IMPUGNED ORDER OF THE LEARNED CIT(A), IT IS OBSERVED THAT THE DECISIONS OF THE CO ORDINATE BENCH OF THE TRIBUNAL, MUMBAI BENCH, HAVE BEEN FOLLOW ED IN SERIES OF OTHER CASES DECIDED BY THE TRIBUNAL. IN ONE SUCH CASES I.E., M/S. ASSET ALLIANCE SECURITIES PVT. LTD. (SUPRA), THE TRIBUNAL OBSERVED AS FOLLOWS: ' THE REVENUE IS IN APPEAL. WE HAVE EXAMINED THE FACTS AND THE RIVAL CONTENTIONS. WHEREAS THE LEARNED SENIOR DR STRONGLY RELIED ON THE ORDER PASSED BY THE AO AND THE STATUTORY PROVISIONS, THE BASIC CONTENTION OF THE ASSESSEE BEFORE US WAS THAT THERE WAS A JOINT VENTURE BETWEEN IT AND THE JOBBERS / ARBITRAGERS TO SHARE THE PROFITS AND LOSSES ARISING ON ACCOUNT OF THE DEALINGS BETWEEN THEM, THAT SUCH AN ARRANGEMENT WAS ON PRINCIPAL TO PRINCIPAL BASIS, THAT THEREFORE THE JOBBER / ARBITRAGER CANNOT BE TERMED AS A CONTRACTOR FOR CARRYING OUT ANY WORK FOR THE ASSESSEE AND IN THESE CIRCUMSTANCES THERE WAS NO QUESTION OF INVOKING SECTION 194C. IT WAS EXPLAINED THAT THIS WAS A BUSINESS DONE BY THE ASSESSEE ON ITS OWN ACCOUNT IN THE STOCK EXCHANGE AND NOT FOR OR ON BEHALF OF ITS CLIENTS FOR BROKERAGE AND FOR THE PURPOSE OF TRADING IN SHARES AND SECURITIES IN THE STOCK EXCHANGE ON ITS OWN ACCOUNT, THE ASSESSEE ENT ERED INTO AGREEMENTS WITH SEVERAL JOBBERS / ARBITRAGERS WITH THE UNDERSTANDING THAT THE ULTIMATE PROFIT OR LOSS IN SUCH TRADE WOULD BE DIVIDED BETWEEN THEM M/S. DHYAN STOCK BROKING PVT. LTD. 5 EQUALLY. AT OUR INSTANCE THE LEARNED REPRESENTATIVE FOR THE ASSESSEE HAS FILED COPIES OF THE AGREEME NTS ENTERED INTO WITH THE JOBBERS / ARBITRAGERS. THE AGREEMENTS ARE IN STANDARD FORM. WE MAY REFER TO THE AGREEMENT WITH MR . AMIT ZAVERI, WHICH IS AT PAGE 23 OF THE PAPER BOOK. THE PREAMBLE TO THE AGREEMENT STATES THAT MR . AMIT ZAVERI HAS SHOWN HIS WILLING NESS TO ACCEPT THE AGREEMENT FOR DEALING AND TRADING IN THE CASH AND F&O SEGMENT OF NSE IN ACCORDANCE WITH THE RULES PRESCRIBED BY SEBI AND THAT HE HAS ACCEPTED TO SHARE THE PROFIT AND LOSS IN THE TRANSACTIONS MADE BY HIM ON BEHALF OF THE ASSESSEE COMPANY AS MUTUALLY AGREED UPON BY THE PARTIES FROM TIME TO TIME. CLAUSE 1 OF THE AGREEMENT SAYS THAT THE ASSESSEE HAS GIVEN TO THE DEALER (MR AMIT ZAVERI) THE RIGHT TO TRADE IN THE CASH AND F&O SEGMENT OF THE NSE. HOWEVER, THE OVERALL SUPERVISION AND CONTROL WILL BE WITH THE ASSESSEE. CLAUSE 2 PROVIDES THAT MR AMIT ZAVERI IS AUTHORIZED TO TRADE AND OUT OF THE NET PROCEEDS, WHETHER PROFIT OR LOSS, FROM SUCH DEALING OF SHARES AND SECURITIES WILL BE SHARED BETWEEN THE ASSESSEE AND HIM IN THE RATIO OF 50 : 50. CLAUSE 3 PROVIDES THAT ALL TRANSACTIONS, DEALINGS AND OTHER FORMALITIES WILL BE CARRIED OUT IN THE NAME OF THE ASSESSEE ONLY. CLAUSE 4 PROVIDES THAT THE ASSESSEE WILL BE SOLELY ENTITLED TO RECEIVE AND KEEP ANY KIND OF DIVIDEND, INTEREST AND OTHER CORPORATE BENEFI TS DURING THE COURSE OF TRANSACTIONS CARRIED OUT BY MR AMIT ZAVERI. CLAUSE 5 OBLIGES THE ASSESSEE TO PAY ALL MARGIN MONIES TO THE STOCK EXCHANGE FOR THE TRANSACTIONS CARRIED OUT BY MR AMIT ZAVERI IN THE NAME OF THE ASSESSEE. MORE IMPORTANTLY IT PROVIDES TH AT ALL APPLICABLE EXPENSES WILL BE DEDUCTED / ADDED BEFORE THE DISTRIBUTION OF THE PROFIT / LOSS AS AGREED UPON IN CLAUSE 2 ABOVE . CLAUSE 6 SAYS THAT THE PARTIES WILL ABIDE BY THE RULES PRESCRIBED BY NSE AND SEBI AND CLAUSE 7 PROVIDES FOR DISCONTINUANCE OF THE AGREEMENT BY GIVING ONE DAYS NOTICE. ALL THE AGREEMENTS FILED BEFORE US ARE IDENTICALLY WORDED. IT HAS BEEN ARGUED ON BEHALF OF THE ASSESSEE ON THE BASIS OF THESE AGREEMENTS THAT THERE WAS A JOINT VENTURE BETWEEN IT AND THE JOBBERS OR ARBITRAGERS F OR TRADING IN SHARES AND SECURITIES IN THE STOCK EXCHANGES ON THE COMPANYS OWN ACCOUNT AND THE PROFITS OR LOSSES ON SUCH TRADING WERE TO BE DIVIDED EQUALLY BETWEEN THE ASSESSEE AND THE CONCERNED JOBBER OR ARBITRAGER. IT WAS FURTHER REPRESENTED BEFORE US T HAT NO EXPENDITURE OR PAYMENT MADE TO THE JOBBER OR ARBITRAGER WAS CLAIMED IN THE ASSESSEES BOOKS OF ACCOUNT FROM WHICH TDS HAD TO BE MADE AND IT WAS ONLY THE NET INCOME FROM THE JOINT VENTURE THAT WAS ACCOUNTED FOR IN THE ASSESSEES BOOKS. IN OTHER WORDS , THE SUBMISSION WAS THAT THE PAYMENT TO THE JOBBERS AND ARBITRAGERS WAS NOT DEBITED TO THE ASSESSEES PROFIT AND LOSS ACCOUNT AT ALL AND THEREFORE THERE WAS NO LIABILITY TO DEDUCT THE TAX. WE CALLED UPON THE ASSESSEE TO PROVE THIS CLAIM WITH REFERENCE TO THE ACCOUNTS. THE ASSESSEE FILED THE ACCOUNTS AND OTHER DETAILS TO ESTABLISH ITS CLAIM. WE FIND M/S. DHYAN STOCK BROKING PVT. LTD. 6 FROM THE PAPERS SUBMITTED BY THE ASSESSEE IN THE FORM OF THREE SEPARATE PAPER BOOKS THAT ON 11TH MARCH 2008 THE ASSESSEE HAD EXPLAINED THE TRADING INCOME OF RS. 6,91,06,197/ - APPEARING IN SCHEDULE G TO THE AUDITED PROFIT AND LOSS ACCOUNT AND IT WAS POINTED OUT THAT OUT OF THE ABOVE TRADING INCOME, JOBBING INCOME AMOUNTED TO RS.1,57,75,393/ - AND ARBITRAGE INCOME AMOUNTED TO RS.14,90,112/ - . OUT OF THE BALANCE, THE OWN TRADING INCOME, WHICH AROSE TO THE ASSESSEE APPARENTLY WITHOUT THE HELP OF THE JOBBERS / ARBITRAGERS, AMOUNTED TO RS.3,07,47,989/ - . THE BALANCE OF RS.2,10,92,703/ - REPRESENTED SECURITY TRANSACTION TAX COLLECTED B Y THE ASSESSEE. THE TOTAL OF THE TRADI NG INCOME FORMED PART OF THE FIGURE OF RS.10,38,05,456/ - WHICH WAS CREDITED TO THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2006 AS BROKING, TRADING AND DEPOSITORY INCOME. IT WAS THIS FIGURE WHICH WAS EXPLAINED IN SCHEDULE G TO THE ACCOUNTS. TH E ASSESSEE AGAIN WROTE A LETTER DATED 11TH APRIL 2008 TO THE AO EXPLAINING THE JOBBING / ARBITRAGE INCOME WHICH WAS INCLUDED IN THE FIGURE OF RS.6,91,06,196/ - . IN THIS LETTER IT WAS SUBMITTED TO THE AO THAT THE JOBBING / ARBITRAGE ACTIVITY WAS CARRIED OUT BY THE ASSESSEE IN ASSOCIATION WITH THE JOBBERS / ARBITRAGERS IN ACCORDANCE WITH PROFIT SHARING AGREEMENTS ENTERED INTO WITH THEM. IT WAS POINTED OUT IN THIS LETTER THAT THE SHARE OF THE JOBBERS AND ARBITRAGERS WERE GIVEN TO THEM AND THE DETAILS OF SUCH AM OUNTS HAD ALREADY BEEN ENCLOSED IN THE EARLIER DATED 11TH MARCH 2008. WE HAVE LOOKED INTO THE DETAILS FILED BY THE ASSESSEE ALONG WITH ITS LETTER DATED 11TH MARCH 2008 FILED BEFORE THE AO. THE DETAILS HAVE BEEN GIVEN UNDER THE HEAD DETAILS OF JOBBERS / AR BITRAGERS ALONG WITH INCOME EARNED FROM JOBBING AND ARBITRAGE ACTIVITY. THE ASSESSEE HAS FURNISHED THE NAMES OF THE JOBBERS, THEIR PERMANENT ACCOUNT NUMBERS AND ADDRESSES. SIMILAR DETAILS HAVE ALSO BEEN GIVEN IN RESPECT OF ARBITRAGERS. THE GROSS AMOUNT RE CEIVED IN RESPECT OF THE BUSINESS CARRIED ON BY THE ASSESSEE THROUGH THE JOBBERS / ARBITRAGERS IS ALSO GIVEN, JOBBER - WISE AND ARBITRAGER - WISE, FROM WHICH THE SHARE OF THE JOBBER / ARBITRAGER HAS BEEN DEDUCTED AND THE BALANCE HAS BEEN TAKEN AS THE ASSESSEE S SHARE OF PROFIT IN THE JOINT VENTURES. THE TOTAL SHARE OF THE JOBBER OUT OF THE GROSS RECEIPTS AND PAID TO THEM COMES TO RS.1,42,24,997/ - AND THE TOTAL SHARE PAID TO THE ARBITRAGERS CAME TO RS.19,46,576/ - . THE AGGREGATE OF THE TWO COMES TO RS.1,61,71,573 / - WHICH IS THE AMOUNT THAT HAS BEEN DISALLOWED BY THE AO BY INVOKING SECTION 194C READ WITH SECTION 40(A)(IA) OF THE ACT. THE FACTS SHOW THAT THERE WERE SEPARATE JOINT VENTURES ENTERED INTO BY THE ASSESSEE WITH SEVERAL JOBBERS / ARBITRAGERS AND PAYMENTS H AVE BEEN MADE TO THEM UNDER SUCH AGREEMENTS AND THE ASSESSEES SHARE IN THE PROFITS HAS BEEN TAKEN TO THE PROFIT AND LOSS ACCOUNT. IN THESE CIRCUMSTANCES THE PROVISIONS OF SECTION 194C ARE NOT ATTRACTED BECAUSE IN ESSENCE M/S. DHYAN STOCK BROKING PVT. LTD. 7 AND SUBSTANCE THE AMOUNTS PAID TO THE JOBBERS OR ARBITRAGERS DID NOT IN REALITY REPRESENT THE EXPENSE OF THE ASSESSEE COMPANY BUT REPRESENTED PAYMENT OF THE SHARE OF THE JOBBERS / ARBITRAGERS UNDER THE AGREEMENT ENTERED INTO WITH THEM. IN SUCH A CASE THE ASSESSEE IS RIGHT IN SAYING THAT TH ERE WAS NO QUESTION OF DEDUCTING ANY TAX AT SOURCE. THE ABOVE FACTS ALSO ESTABLISH THAT THE RELATIONSHIP BETWEEN THE ASSESSEE AND THE JOBBERS / ARBITRAGERS WAS NOT OF PRINCIPAL AND AGENT BUT WAS THAT OF PRINCIPAL TO PRINCIPAL. BOTH HAD AGREED TO EMBARK UPO N A JOINT VENTURE TO TRADE IN SHARES AND SECURITIES IN THE STOCK EXCHANGE AND TO SHARE THE PROFIT / LOSS EQUALLY. WE DO NOT SEE HOW SUCH PAYMENTS CAN BE TERMED AS PAYMENTS TO CONTRACTORS FOR ANY WORK TO BE CARRIED OUT BY THEM. WE THEREFORE UPHOLD THE FINDI NG OF THE CIT(A) THAT THESE PAYMENTS DO NOT ATTRACT SECTION 194C AND THE ASSESSEE WAS NOT LIABLE TO DEDUCT TAX THERE FROM. ACCORDINGLY SECTION 40(A)(IA) IS ALSO NOT APPLICABLE. THE PAYMENTS, IN OUR VIEW, WERE RIGHTLY ALLOWED AS DEDUCTION BY THE CIT(A). THE GROUNDS 7 TO 10 ARE DISMISSED. SINCE THE ISSUE INVOLVED IN THE PRESENT CASE AS WELL AS ALL THE MATERIAL FACTS RELEVANT THERETO ARE SIMILAR, WE RESPECTFULLY FOLLOW THE ORDER OF THE TRIBUNAL IN THE CASE OF M/S ASSET ALLIANCE SECURITIES PVT. LTD. (SUPRA) AND UPHOLD THE IMPUGNED ORDER OF THE L EARNE D CIT(A) DELETING THE ADDITION MADE BY THE ASSESSING OFFICER HOLDING THAT THE PROVISIONS OF SECTION 194C OF THE ACT ARE NOT ATTRACT ED IN THIS CASE AS THE PAYMENTS MADE BY THE ASSESSEE TO JOBBERS / ARBITRAGERS REPR ESENT SHARE OF THE JOBBERS / ARBITRAGERS UNDER THE AGREEMENT WHICH IS ON PRINCIPAL TO PRINCIPAL BASIS. THUS, THE G ROUND OF APPEAL NO.1, RAISED BY THE REVENUE AP PEAL IS ACCORDINGLY DISMISSED. 7. THE SECOND GROUND RAISED BY THE REVENUE IS RELATING TO TAKING OF THE COST OF ACQUISITION OF BSE SHARES AS COST OF ACQUISITION OF BSE CARD FOR THE PURPOSE OF COMPUTATION OF CAPITAL GAINS. M/S. DHYAN STOCK BROKING PVT. LTD. 8 8. THE LEARNED CIT(A), WHILE REVERSING THE ORDER OF THE ASSESSING OFFICER , DELETED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER IN VIEW OF THE SPECIFIC PROVISIONS OF SECTION 55(2)(AB) OF THE ACT, WHEREIN IT IS PROVIDED THAT THE ASSESSEE SHOULD BE ALLOWED TO TAKE COST OF THE ACQUISITION OF THE ORIGINAL BSE CARD AS COST OF ACQUISITION OF BSE EQUITY SHARES . 9. W E SEE NO INFIRMITY IN THE IMPUGNED DECISION OF THE LEARNED CIT(A) WARRANTING INTERFERENCE AT THE INSTANCE OF THE DEPARTMENT INASMUCH AS THE LEARNED CIT(A) ACCEPTED THE CLAIM OF THE ASSESSEE HOLDING THAT THE ASSESSEE WA S ALLOWED TO TAK E THE COST OF ACQUISITION AS PER THE SPECIFIC PROVISIONS OF SECTION 55(2)(AB) OF THE A C T . THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NOT BROUGHT ANYTHING ON RECORD CONTRARY TO THE ABOVE NOTED SPECIFIC PROVISIONS OF THE ACT. CONSEQUENTLY, THE GROUND OF APP EAL NO.2, RAISED BY THE REVENUE IS DISMISSED. 10. I N THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT O N 14.05.2015 SD/ - R.C. SHARMA ACCOUNTANT MEMBER SD/ - SANJAY GARG JUDICIAL MEMBER MUMBAI, DATED : 13.08.2015 M/S. DHYAN STOCK BROKING PVT. LTD. 9 COPY OF THE ORDER FORW ARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY (DY./ASSTT. REGISTRAR) ITAT, MUMBAI