ASST CIT CIR 4(2), MUMBAI V. PRANAV SECURITIES P.LTD, MUMBAI

ITA 1794/MUM/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5871 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 04-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L PERUMAL
• Assessee Lawyers: B B JOKHAKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C, MUMBAI BEFORE SHRI R.C SHARMA, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 1794/MUM/2011 ASSESSMENT YEAR: 2007-08 THE ACIT, CIR - 4(2) MUMBAI-. VS. M/S. PRANAV SECURITIES PVT. LTD. RAJA BAHADUR MANSION, 8, AMBALAL DOSHI MARG, FORT, MUMBAI- 400 001 (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- AABCP 4651 L ASSESSEE BY : SHRI B.B. JOKHAKAR REVENUE BY : SHRI M. L. PERUMAL DATE OF HEARING : 11.03.2014 DATE OF PRONOUNCEMENT : 26.03.2014 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE LD.CIT(A)-8, MUMBAI DATED 16.12.2010 FOR THE ASSESS MENT YEAR 2007-08. 2. IN GROUND NO. 1, THE REVENUE HAS AGITATED THE AC TION OF THE LD.CIT(A) DELETING THE DISALLOWANCE OF RS.20,18,208/- MADE BY THE AO IN RESPECT OF VSAT TRANSACTION AND LEASE CHARGES PAID TO THE STOCK EXC HANGE WHERE NO TDS WAS DEDUCTED THEREON. 2.1 AT THE OUTSET, IT IS NOTED THAT THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO. 6443/MUM/2009 FOR THE ASSESSMENT YEAR 2006-07, ON AN IDENTICAL ISSUE, DISMISSED THE GROUND RAISED BY THE REVENUE ON THE R EASON THAT THE PAYMENTS MADE BY THE ASSESSEE DO NOT FALL WITHIN THE DOMAIN OF F EES FOR TECHNICAL SERVICES BY RELYING ON THE DECISION OF THE TRIBUNAL IN THE CASE OF KOTAK SECURITIES [25 SOT 440]. THE TRIBUNAL IN THE SAID ORDER HAS CONFIRMED THE DE CISION OF THE LD.CIT(A) THAT THE IMPUGNED SUM IS NOT DISALLOWABLE U/S 40(A)(IA) OF T HE ACT. THE RELEVANT FINDINGS OF ITA NO. 1794/MUM/2011 M/S. PRANAV SECURITIES PVT. LTD. ASSESSMENT YEAR: 2007-08 2 THE TRIBUNAL ARE STATED IN PARA NOS. 1 2, 3 & 4 OF THE SAID ORDER. IN VIEW OF THE FACT THAT THE REVENUE HAS NOT BROUGHT ON RECORD ANY CONT RARY DECISION AND FACTS BROUGHT ON RECORD BY THE REVENUE ON THIS ISSUE, WE, FOLLOWI NG THE SAID ORDER OF THE TRIBUNAL DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE AND AGA INST THE REVENUE. RESULTANTLY, GROUND NO. 1 IS DISMISSED . 3. IN GROUND NO. 2, THE REVENUE HAS AGITATED THE DE CISION OF THE LD.CIT(A) IN DELETING THE DISALLOWANCE MADE BY THE AO U/S 40(A)( IA) IN RESPECT OF PAYMENTS OF BLOOMBERG DATA SERVICES OF RS.9,31,043/- AND CAPITA L MARKET PUBLISHERS OF RS.3,10,000/-. 3.1 IT IS NOTED THAT A SIMILAR ISSUE HAS BEEN DECID ED BY THE TRIBUNAL IN ASSESSEES FAVOUR IN ITS OWN CASE FOR THE ASSESSMENT YEAR 2006 -07 AFOREMENTIONED, WHEREIN IT HAS BEEN HELD THAT THE IMPUGNED PAYMENTS ARE MORE I N THE NATURE OF SUBSCRIPTION OF NEWSPAPER OR MAGAZINE AND HENCE THE SAME CANNOT BE EQUATED TO TECHNICAL SERVICE. THE RELEVANT FINDING OF THE TRIBUNAL IS STATED IN P ARA NO. 12 OF THE SAID ORDER. IN THE ABSENCE OF ANY DISTINGUISHABLE FACTS BROUGHT ON REC ORD BY THE REVENUE DURING THE YEAR UNDER CONSIDERATION, WE, FOLLOWING THE SAID OR DER, DECIDE THIS GROUND IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. RESULTANTL Y, GROUND NO. 2 IS DISMISSED. 4. GROUNDS NO. 3 & 4 ARE GENERAL IN NATURE AND HENC E THE SAME DO NOT REQUIRE ANY ADJUDICATION. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 6 TH DAY OF MARCH, 2014. SD/- SD/- (R.C. SHARMA) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 26.03.2014. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR C BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.