INFINA FINANCE P. L;TD ( FORMERLY KNOWN AS KOTAK MAHINDRA SECURITIES LTD), MUMBAI V. ADDL CIT RG 2(2), MUMBAI

ITA 197/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79251 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 25-06-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 09-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRASAD LANKE

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL I B ENCH, MUMBAI , !', % % % % &' . % . () . % . , !' * BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND DR.S.T.M. PAVALAN, JUDICIAL MEMBER ./ I.T.A. NO.197/MUM/2012 ( + + + + / ASSESSMENT YEAR :2008-09 M/S. INFINA FINANCE PVT.LTD., (FORMERLY KNOWN AS KOTAK MAHINDRA SECURITIES LTD.,) 1 ST FLOOR, NAVSARI BLDG., 240 DN ROAD, FORT, MUMBAI-400 001 / VS. THE ACIT, RANGE 2(2), AAYAKAR BHAVAN, MUMBAI-400 020 ', ./ -. ./ PAN/GIR NO. : AACCM 1561 D ( ,/ / APPELLANT ) .. ( 01,/ / RESPONDENT ) ,/ 2 / APPELLANT BY: SHRI RAVINDER SINDHU 01,/ 3 2 / RESPONDENT BY: SHRI PRASAD LANKE 3 4) / DATE OF HEARING :25.06.2014 56+ 3 4) / DATE OF PRONOUNCEMENT :25.06.2014 !7 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. CIT(A)-5, MUMBAI DT.28.10.2011 PERTAINING TO A.Y. 2008-09. ITA NO. 197/M/2012 2 2. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE LD . CIT(A) ON TWO GROUNDS. (1) CONFIRMING THE ADDITION OF RS. 74,33 4/- IN THE CASE OF KASHISH COMMODITIES PVT. LTD AND (2) RS. 42,992/- I N THE CASE OF TRADEWELL SECURITIES LTD. 3. THE ASSESSEE IS IN THE BUSINESS OF INVESTMENT OF IPO FINANCING. RETURN OF INCOME DECLARING TOTAL INCOME AT RS. 70, 33,57,577/- WAS FILED ON 28.9.2008. THE RETURN WAS SELECTED FOR SCRUTINY ASSESSMENT AND STATUTORY NOTICES WERE ISSUED AND SERVED UPON THE A SSESSEE. 3.1. DURING THE COURSE OF THE ASSESSMENT PROCEEDING S, THE ASSESSING OFFICER CONFRONTED THE ASSESSEE WITH THE AIR INFORM ATION. THE ASSESSEE WAS ASKED TO RECONCILE THE DISCREPANCY IN INTEREST RECEIVED AS SHOWN IN THE BOOKS AND INTEREST RECEIVED AS PER AIR INFORMAT ION IN RESPECT OF 11 PARTIES. THE ASSESSEE COULD NOT RECONCILE THE DISC REPANCY. THE AO ACCORDINGLY MADE THE ADDITION OF RS. 31,38,727/-. 4. THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. C IT(A). BEFORE THE LD. CIT(A), THE ASSESSEE COULD RECONCILE THE DIFFER ENCE IN RESPECT OF 9 PARTIES WHICH RECONCILIATION HAS BEEN ACCEPTED BY T HE LD. CIT(A) IN RESPECT OF 2 PARTIES I.E. M/S. KASHISH COMMODITIES PVT. LTD AND M/S. TRADEWELL SECURITIES LTD. THE ASSESSEE EXPLAINED TH E REASON FOR THE DIFFERENCE BY BRINGING DEMONSTRATIVE MATERIAL EVIDE NCE ON RECORD. THE LD. CIT(A) WAS OF THE OPINION THAT THE PAYERS M/S. KASHISH COMMODITIES PVT. LTD AND M/S. TRADEWELL SECURITIES LTD. DID NO T UPLOAD THE CORRECT FIGURE IN THEIR E-TDS RETURNS THEREFORE THE LD. CIT (A) DID NOT ACCEPT THE RECONCILIATION AND CONFIRMED THE ADDITIONS IN RESPE CT OF M/S. KASHISH COMMODITIES PVT. LTD AT RS. 74,334/- AND IN RESPEC T OF M/S. TRADEWELL SECURITIES LTD. AT RS. 42,992/-. ITA NO. 197/M/2012 3 5. AGGRIEVED BY THIS, THE ASSESSEE IS BEFORE US. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS IN THE BUSINESS OF FINANCING IPOS. M/S. KASHISH COMMO DITIES PVT. LTD., THE ASSESSEE DEBITED THE PARTY BY RS. 12,63,670/- BEING INTEREST. THEREAFTER, THE ASSESSEE REFUNDED RS. 74,334/- TO THE PARTY THR OUGH CHEQUE NO. 000612 AND THEREFORE THE NET INTEREST HAS BEEN SHOW N. SIMILARLY, IN THE CASE OF M/S. TRADEWELL SECURITIES LTD., THE ASSESS EE HAS REFUNDED INTEREST AMOUNTING TO RS. 42,992/- AND ONLY THE NET INTEREST HAS BEEN SHOWN AS INCOME. THE LD. COUNSEL PLACED NECESSARY DOCUMENTS IN SUPPORT OF ITS CLAIM. 7. THE LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUP PORTED THE FINDINGS OF THE LOWER AUTHORITIES. 8. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE LOWE R AUTHORITIES. WE FIND FORCE IN THE SUBMISSIONS OF THE LD. COUNSEL. WE FIND THAT IN THE CASE OF M/S. KASHISH COMMODITIES PVT. LTD INITIALLY THE INTEREST WAS CHARGED AT RS. 12,63,670/- SUBSEQUENTLY THE ASSESSEE REFUND ED RS. 74,334/- ON 21.8.2007 THROUGH ACCOUNT PAYEE CHEQUE AS IS EVIDEN CED FROM THE EXHIBIT-12 OF THE PAPER BOOK. THE ASSESSEE HAS ACC OUNTED FOR THE NET INTEREST AMOUNTING TO RS. 11,89,336/-. SIMILARLY I N THE CASE OF M/S. TRADEWELL SECURITIES LTD., THE ASSESSEE INITIALLY D EBITED RS. 3,64,537/- AND RS. 2,87,019/- AS INTEREST. BUT SUBSEQUENTLY THE A SSESSEE REFUNDED RS. 23,858/- AND RS. 19134/- THEREBY TAKING THE NET INT EREST AS INCOME AMOUNTING TO RS. 3,40,679/- AND RS. 2,67,885/-. WI TH THIS FACTUAL MATRIX, THE DISCREPANCY, IF ANY, NOTED BY THE AO STANDS REC ONCILED. ITA NO. 197/M/2012 4 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH JUNE, 2014 . !7 3 6+ 8 9!: 25.6.2014 6 3 ; SD/- SD/- (DR. S.T.M. PAVALAN) (N.K. BILLAIYA) !' /JUDICIAL MEMBER !' / ACCOUNTANT MEMBER MUMBAI; 9! DATED 25.6.2014 . . ./ RJ , SR. PS !7 !7 !7 !7 3 33 3 04 04 04 04 <+4 <+4 <+4 <+4 / COPY OF THE ORDER FORWARDED TO : 1. ,/ / THE APPELLANT 2. 01,/ / THE RESPONDENT. 3. = ( ) / THE CIT(A)- 4. = / CIT 5. >; 04 , , / DR, ITAT, MUMBAI 6. ;& ? / GUARD FILE. !7 !7 !7 !7 / BY ORDER, 14 04 //TRUE COPY// @ @@ @ / A A A A - - - - (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI