ASST CIT CIR 4(2), MUMBAI V. SHCIL SERVICES LTD, MUMBAI

ITA 1796/MUM/2011

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0636 (ITAT-MUMBAI)
• Duration Of Justice: 6 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 08-03-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 04-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B S BIST

Judgement Text

' IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H , MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR , ACCOUNTANT MEMBER ITA NO. 1 7 9 6 /MUM/201 1 , (A.Y : 20 0 7 - 0 8 ) ACIT CIR.4(2) ROOM NO.642, 6 TH FLOOR AAYAKAR BHAVAN M.K.ROAD MUMBAI 400 020 VS. M/S SHCIL SERVICES LTD. GROUND FLOOR, P.J.TOWERS DALAL STREET, FORT MUMBAI 400 023 PAN : AA JCS5661H ITA NO.1221/MUM/2011, (A.Y:2007 - 08) M/S SHCIL SERVICES LTD. GROUND FLOOR, P.J.TOWERS DALAL STREET, FORT MUMBAI 400 023 PAN : AA JCS5661H VS. ACIT CIR.4(2) ROOM NO.642, 6 TH FLOOR AAYAKAR BHAVAN M.K.ROAD MUMBAI 400 020 ( / APPELLANT) ( / RESPONDENT) / ASSESSEE BY : SHRI AKRAM KHAN & SHRI RAUNAK VARDHAN / RE VENUE BY : SHRI B.S.BIST / DATE OF HEARING : 8. 3 . 2017 / DATE OF PRONOUNCEMENT : 12 . 5 . 2017 / O R D E R P ER C.N.PRASAD (JM) TH IS APPEAL IS RECALLED FOR THE PURPOSE OF DISPOSING OF THE GROUND RELATING TO DISALLOWANCE OF TRANSACTION CHARGES PAID TO BSE U/S 40(A)(IA) OF THE ACT. 2 ITA NO. 1 7 9 6 /MUM/201 1 & CO NO.1221/MUM/2011 (A.Y.20 0 7 - 0 8 ) M/S SCHCIL SERVICES LTD. 2. THIS TRIBUNAL BY ORDER DATED 28.8.2014 IN ITA NO.1796/MUM/2011 DECIDED THIS ISSUE AGAINST THE ASSESSEE BY FOLLOWING THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. KOTAK SECURITIES LTD [340 ITR 333]. SUBSEQUENTLY, THE HONBLE SUPREME COURT REVERSED T HE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. KOTAK SECURITIES LTD, WHEREIN, IT WAS HELD THAT THE VIEW TAKEN BY THE HONBLE BOMBAY HIGH COURT THAT THE TRANSACTION CHARGES PAID TO THE BOMBAY STOCK EXCHANGE BY ITS MEMBERS ARE FOR TECHNI CAL SERVICES RENDERED IS NOT AN APPROPRIATE VIEW. IT WAS HELD THAT SUCH CHARGES ARE IN THE NATURE OF PAYMENTS MADE FOR FACILITIES PROVIDED BY THE STOCK EXCHANGE AND NO TDS ON SUCH PAYMENTS WOULD THEREFORE BE DEDUCTIBLE U/S 194J OF THE ACT. IN VIEW OF THIS DECISION OF THE HONBLE SUPREME COURT, THE APPEAL OF THE REVENUE WAS RECALLED BY THIS TRIBUNAL IN MA NO.106/MUM/2010 DATED 31.2.2017 TO DISPOSE OFF THE GROUND IN CONSONANCE WITH THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. KOTAK SERVIC ES LTD. THEREFORE, RESPECTFULLY FOLLOWING THE SAID DECISION, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. ASSESSING OFFICER IS DIRECTED TO DELETE THE DISALLOWANCE MADE U/S 40(A)(IA) IN RESPECT OF TRANSACTION CHARGES PAID BY THE ASSESSEE TO STOCK EXCHANGE. 3 . IN THE RESULT, APPEAL OF THE REVENUE ON THIS GROUND IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THE 12 TH DAY OF MAY 2017 . SD/ - SD/ - ( RAMIT KOCHAR ) ( C.N.PRASAD ) / / ACCOUNTANT MEMBER JUDICIAL MEMBER / MUMBAI; / DATED 12 .0 5 . 2017 LR, SPS 3 ITA NO. 1 7 9 6 /MUM/201 1 & CO NO.1221/MUM/2011 (A.Y.20 0 7 - 0 8 ) M/S SCHCIL SERVICES LTD. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, (ASSTT. REGISTRAR) , / ITAT, MUM 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. // TRUE COPY / /