DCIT 4(2), MUMBAI V. S.G. ASIA HOLDINGS (I) P. LTD, MUMBAI

ITA 2985/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2363 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2005-2006
• Appeal Filed On: 08-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISHAN VYAS
• Keywords: TDS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH K, MUMBAI BEFORE SHRI SHRI A.L. GEHLOT, A.M. & SHRI R.S. PAD VEYAR, J.M. ITA NO. 2985/M/2009 ASSESSMENT YEAR: 2005-06 THE DY. COMMISSIONER OF INCOME-TAX, APPELLANT ROOM NO. 642, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020 VS. M/S S.G. ASIA HOLDINGS (I) P. LTD., RESPONDENT CEEJAY HOUSE, 9 TH FLOOR, DR. ANNIE BESANT ROAD, WORLI, MUMBAI 400 018 APPELLANT BY : MR. KISHAN VYAS RESPONDENT BY : MR. MADHUR AGARWAL ORDER PER A.L. GEHLOT, A.M.: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT(A)-IV, MUMBAI, PASSED ON 16.02.2009 FOR THE ASS ESSMENT YEAR 2005-06. 2. THE EFFECTIVE GROUND RAISED IN THIS APPEAL READS AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE M ADE IN RESPECT OF V-SAT CHARGES AND TRANSACTION CHARGES AMOUNTING TO RS. 32,14,649/- WITHOUT REALIZING THE FACT THAT THESE W ERE COMPOSITE CHARGES ALONG WITH TRANSACTION CHARGES FOR PROFESSI ONAL AND TECHNICAL SERVICES RENDERED BY THE EXCHANGE TO ITS MEMBERS AND THE ASSESSEE HAS FAILED TO DEDUCT TDS THEREON. 3. THE AO HELD THAT PAYMENT OF TRANSACTION CHARGES FOR TECHNICAL SERVICES COMES WITHIN THE PURVIEW OF SECTION 194J A ND TS WAS DEDUCTIBLE ON THE SAME. SINCE THE ASSESSEE DID NOT DEDUCT THE TDS ON ITA NO. 2985/MUM/2009 M/S S.G. ASIA HOLDAYS (I) PVT. LTD. 2 THE SAME, THEREFORE, THE AO MADE THE ADDITION U/S 4 0(A)(IA) OF THE ACT. THE CIT(A) DELETED THE SAID ADDITION FOLLOWING THE DECISION OF ITAT, MUMBAI VIDE ITA NO. 1955/MUM/08 FOR AY 2005-06 IN C ASE OF KOTAK SECURITIES VS. ADDL. CIT-4(3) ORDER DATED 26.08.200 8 WHEREIN IT HAS BEEN HELD THAT STOCK EXCHANGE DOES NOT PROVIDE MANA GERIAL SERVICES AND THE FEES PAID BY THE MEMBER TO THE STOCK EXCHAN GE IS NOT FOR ANY TECHNICAL SERVICES RENDERED, SO TDS IS NOT DEDUCTIB LE ON THE SAME. 4. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES AND PERUSED THE RECORD. WE FIND THAT CIT(A) DELETED THE ADDITION FOLLOWING THE DECISION OF ITAT AND IN THE LIGHT OF THAT WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A). TTHEREFORE, WE CO NFIRM THE ORDER OF CIT(A) ON THIS ISSUE AND DISMISS THE GROUND RAISED BY THE REVENUE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED ON THIS 12 TH DAY OF APRIL, 2010. SD/- SD/- (R.S. PADVEKAR) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED: 12 TH APRIL, 2010. COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE, K BENCH, I.T .A.T., MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR, I.T.A.T., MUMBAI. KV ITA NO. 2985/MUM/2009 M/S S.G. ASIA HOLDAYS (I) PVT. LTD. 3 S.NO. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON 8.4.10 SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR 9.4.10 SR.P.S/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER