DCIT CIR 4(2), MUMBAI V. PRATIBHUTI VINIHUT LTD, MUMBAI

ITA 2749/MUM/2010

• Counselvise Citation: 274919914 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 26-07-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 08-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALEXANDER CHANDY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C : MUMBAI BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ITA. NO. 2749/MUM/2010 ASSESSMENT YEAR 2006-2007 ACIT, CIRCLE 4 (2) MUMBAI 400 020 VS. M/S. PRATIBHUTI VINIHIT LTD. MUMBAI 400 001 PAN AAACP6298A (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI ALEXANDER CHANDY, SR.D.R. FOR RESPONDENT : -NONE- DATE OF HEARING : 26-7-2011 DATE OF PRONOUNCEMENT : 29-7-2011 ORDER PER D. MANMOHAN, V.P. 1. THIS IS AN APPEAL FILED AT THE INSTANCE OF THE REVENUE AND IT PERTAINS TO THE ASSESSMENT YEAR 2006-2007. WHETH ER TDS IS DEDUCTIBLE ON THE PAYMENTS MADE TO STOCK EXCHANGE T OWARDS VSAT AND LEASELINE CHARGES AND WHETHER ASSESSEE IS ENTIT LED TO ACCOUNT FOR LOSSES OF OPEN INTEREST IN DERIVATIVE TRANSACTIONS AT THE END OF THE YEAR ARE THE SUBJECT MATTER OF DISPUTE BEFORE US. 2. THOUGH NOTICE WAS SENT TO THE ASSESSEE BY RPAD, NONE APPEARED ON BEHALF OF THE ASSESSEE AND HENCE, WE PR OCEED TO DISPOSE OF THE APPEAL EX-PARTE, QUA THE ASSESSEE. IT IS NOT ICED THAT THE LEARNED CIT(A) HAS FOLLOWED THE DECISION OF THE ITAT, MUMBA I BENCH IN THE CASE OF KOTAK SECURITIES REPORTED IN 25 SOT 440 TO HOLD THAT ADDITION MADE BY THE ASSESSING OFFICER UNDER SECTION 40(A)(I A) IS NOT IN ACCORDANCE WITH LAW. SIMILARLY, AS REGARDS THE MARK ET LOSS CLAIMED AT THE END OF THE ACCOUNTING YEAR REFERABLE TO DERIVAT IVE SHARING IN TRADES LEARNED CIT(A) FOLLOWED THE DECISION OF THE APEX CO URT IN THE CASE OF WOODWARD GOVERNOR INDIA P. LTD. 312 ITR 254 (SC) TO HOLD THAT MARK ITA.NO.2749/M/2010 M/S. PRATIBHUTI VINIHIT LTD. 2 TO MARKET LOSSES IN CASE OF STOCK FUTURE AS ON BALA NCE SHEET DATE IS ALLOWABLE. 3. LEARNED DR WAS UNABLE TO DISTINGUISH THE DECISI ONS RELIED UPON BY THE LEARNED CIT(A). HOWEVER, AS REGARDS GRO UND NO.2 HE RELIED UPON THE INSTRUCTIONS OF THE CBDT TO SUBMIT THAT SU CH NOTIONAL LOSS SHOULD BE TREATED AS CONTINGENT IN NATURE AND CANNO T BE ALLOWED AS DEDUCTION (INSTRUCTION NO.3/2010 DATED 23-3-2010). 4. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LEARN ED CIT(A). ADMITTEDLY, THE FIRST ISSUE IS SQUARELY COVERED BY THE DECISION OF THE ITAT IN THE CASE OF KOTAK SECURITIES (SUPRA) AND WI TH REGARD TO SECOND ISSUE, LEARNED CIT(A) FOLLOWED THE DECISION OF THE APEX COURT (SUPRA) AND THE LEARNED DR WAS UNABLE TO POINT OUT AS TO HO W THE AFORECITED DECISIONS ARE NOT APPLICABLE TO THE FACTS OF THE IN STANT CASE. UNDER THE CIRCUMSTANCES, WE UPHOLD THE ORDER OF THE LEARNED C IT(A) AND DISMISS THE APPEAL FILED BY THE REVENUE. ORDER PRONOUNCED IN THE OPEN COURT, ON THIS THE 2 9 TH DAY OF JULY, 2011. SD/- SD/- (PRAMOD KUMAR) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATE 29 TH JULY, 2011 VBP/- ITA.NO.2749/M/2010 M/S. PRATIBHUTI VINIHIT LTD. 3 COPY TO 1. ACIT, CIRCLE 4 (2), ROOM NO. 642, 6 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI 400 020 2. M/S. PRATIBHUTI VINIHIT LTD., 15A-28, RAJABAHADU R MANSION, 3 RD FLOOR, BOMBAY SAMACHAR MARG, FORT, MUMBAI 400 00 1 PAN AAACP6298A 3. CIT(A)-8, MUMBAI 4. CIT-4, MUMBAI 5. DR C BENCH 6. GUARD FILE TRUE COPY BY ORDER ASST. REGISTRAR, ITAT, MUMBAI BENCHES MUMBAI.