Myraid Investment & Finance Pvt. Ltd., Kolkata V. I.T.O.Ward-4(2), Kolkata

ITA 201/KOL/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2411 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 05-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Search and seizure
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.201/KOL/2019 ASSESSMENT YEAR:2015-16 MYRAID INVESTMENT & FINANCE PVT. LTD., 55, YAMUNA BHAWAN, EZRA STREET, KOLKATA-700001 [ PAN NO.AABCM 6762 F ] / V/S . INCOME TAX OFFICER, WARD-4(2), P-7, CHOWRINGHEE SQUARE, KOLKATA-69 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI S.L.KOCHAR, ADVOCATE & SHRI ARYAN KOCHAR, ADVOCATE /BY RESPONDENT SHRI BAVASH ROY, JCIT-DR /DATE OF HEARING 17-06-2019 /DATE OF PRONOUNCEMENT 21-06-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2015-16 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-2, KOLKATAS O RDER DATED 29.11.2018 PASSED IN CASE NO.10263/CIT(A)-2/17-18 INVOLVING PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES AT THE OUTSET THAT THE ASSESSEES SOLE SUBSTANTIVE GROUND SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION TREATING ITS MEMBERSHIP OF INTER CONNECTED STOCK EXCHANGE OF INDIA LTD. INVOLVING SUMS OF 5 L AC IN THE YEAR 1999-00 TO BE A MERE ADMISSION FEE INSTEAD OF MEMBERSHIP FEE. THE A SSESSEE HAD WRITTEN OFF THE IMPUGNED SUM IN THE RELEVANT PREVIOUS YEAR AND THE CORRESPONDING SUM WAS CLAIMED OTHER EXPENSES UNDER REVENUE HEAD. BOTH THE LEARN ED LOWER AUTHORITIES HOLD THAT THE IMPUGNED EXPENDITURE WAS IN THE NATURE OF ADMISSION FEE RATHER THAN MEMBERSHIP FEE ITA NO.201/KOL/2019 A.Y. 2015-16 MYRAID INVESTMENT & FINANCE PVT. LTD. VS. ITO WD -4(2), KOL. PAGE 2 IN THE NATURE OF REFUNDABLE EXPENDITURE. I FIND IN THIS BACKDROP FACTS THAT THIS TRIBUNALS SPECIAL BENCH DECISION IN PEERLESS SECURITIES LTD. VS. JCIT (2005) 60 SCL 59 HOLDS THAT SUCH AN EXPENDITURE IN OTC EXCHANGE OF INDIA I NCURRED FOR AN ADMISSION FEE FLOOR OF AN OTC EXCHANGE OF INDIA OR NON-ADJUSTABLE DEPOSIT FOR ADMISSION AS A TRADING MEMBER OF THE WHOLESALE DEBT MARKET OF NATI ONAL STOCK EXCHANGE OF INDIA ARE OF REVENUE IN NATURE. I THEREFORE ADOPT THE SAID RE ASONING MUTATIS MUTANDIS TO CONCLUDE THAT THE ASSESSEES IMPUGNED CLAIM HAS BEEN WRONGLY DENIED IN THE COURSE OF ASSESSMENT AS WELL AS IN LOWER APPELLATE PROCEEDING S. THE IMPUGNED DISALLOWANCE IS DELETED THEREFORE. 3. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 21/06/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 21/06/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-MYRAID INVESTMENT & FINANCE PVT. LTD. 5 5, YAMUNA BHAWAN 55, YAMUNA B HAWAN, EZRA STREET, KOLKATA-700001 2. /RESPONDENT-ITO WARD-4(2), P-7, CHOWRINIGHEE SQUARE , KOLKATA-69 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ ',