KESHAV SECURITIES P.LTD, MUMBAI V. ITO TDS 2(2), MUMBAI

ITA 1932/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2444 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2010-2011
• Appeal Filed On: 06-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK RIPOTE
• Assessee Lawyers: DARSHAN SANDHI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER & SHRI AMARJIT SINGH, JUDICIAL MEMBER. ITA NO. 1932 /MUM/2015 (ASSESSMENT YEAR : 2010-11) KESHAV SECURITIES PVT. LTD., 701, 7 TH FLOOR, PREM SAGAR, PLOT NO.57, SWASTIC SOCIETY, N.S.ROAD NO.3, VILEPARLE(W), MUMBAI 400 056 PAN: AACCK 2279A ... APPELLANT VS. THE ITO TDS 2(2), MUMBAI. .... RESPONDENT APPELLANT BY : SHRI DARSHAN SANDHI RESPONDENT BY : SHRI DEEPAK RIPOTE DATE OF HEARING : 19/07/2016 DATE OF PRONOUNCEMENT : 22/07/2016 ORDER PER G.S.PANNU,A.M: THE CAPTIONED APPEAL FILED BY THE ASSESSEE PERTAI NING TO ASSESSMENT YEAR 2010-11 IS DIRECTED AGAINST AN ORD ER PASSED BY CIT(A)- 59, MUMBAI DATED 12/01/2015 WHICH IN TURN ARISES O UT OF AN ORDER DATED 22/03/2012 PASSED UNDER SECTION 201(1)/201( 1A) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. IN THIS APPEAL, THE ONLY EFFECTIVE DISPUTE RELA TES TO THE ISSUE AS TO WHETHER TAX IS REQUIRED TO BE DEDUCTED UNDER SECTIO N 194J OF THE ACT IN RELATION TO PAYMENTS MADE TO BOMBAY STOCK EXCHANGE (BSE) AS TRANSACTION CHARGES. THE ASSESSING OFFICER AS WELL AS THE CIT(A) HELD 2 ITA NO. 1932 /MUM/2015 (ASSESSMENT YEAR : 2010-11) THAT THE TRANSACTION CHARGES OF RS.50,80,175/- PAI D BY THE ASSESSEE TO BSE/NSE WERE IN THE NATURE OF FEE FOR TECHNICAL S ERVICES COVERED UNDER SECTION 194J OF THE ACT AND THUS, ASSESSEE WA S LIABLE TO DEDUCT TAX AT SOURCE WHILE CREDITING/PAYING SUCH AMOUNT TO STOCK EXCHANGES. 3. BEFORE US, LD. REPRESENTATIVE FOR THE ASSESSEE P OINTED OUT THAT THE DECISION OF THE LOWER AUTHORITIES WAS BASED ON THE JUDGMENT OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. KO TAK SECURITIES LTD. (2011) 15 TAXMANN.COM 77 (BOM) WHEREAS, SUBSEQUENTL Y, THE HON'BLE SUPREME COURT VIDE JUDGMENT IN CIVIL APPEAL NO.314 1 OF 2016 DATED 29/03/2016 HAS REVERSED THE DECISION OF THE HON'BL E BOMBAY HIGH COURT. AS PER HON'BLE SUPREME COURT, THE TRANSACTI ON CHARGES PAID TO THE BSE BY ITS MEMBERS ARE NOT IN THE NATURE OF PA YMENTS FOR TECHNICAL SERVICES FOR THE PURPOSE OF SECTION 194J OF THE AC T . IN VIEW OF THE AFORESAID PRONOUNCEMENT BY THE HON'BLE SUPREME COU RT, THE ORDERS OF THE AUTHORITIES BELOW DESERVES TO BE REVERSED, WHIC H WE DO SO. AS A CONSEQUENCE, WE SET-ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE ASSESSING OFFICER NOT TO TREAT THE APPELLANT AS AN ASSESSEE IN DEFAULT, WITHIN THE MEANING OF SECTION 201/201A OF THE ACT, QUA THE PAYMENT OF TRANSACTION CHARGES MADE TO THE BSE/NSE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED , AS ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 22/07/2016 SD/- SD/- (AMARJIT SINGH) (G.S. PANNU) JUDICIAL MEMBER ACCOU NTANT MEMBER MUMBAI, DATED 22/07/2016 VM , SR. PS 3 ITA NO. 1932 /MUM/2015 (ASSESSMENT YEAR : 2010-11) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI