ACIT CIR 6(3), MUMBAI V. GLOBAL COMMODITIES INDIA P.LTD, MUMBAI

ITA 4594/MUM/2013

• Counselvise Citation: 459419914 RSA 2013
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2008-2009
• Appeal Filed On: 11-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R N DSOUZA
• Assessee Lawyers: ASHISH TBADEER
• Keywords: Revenue expenditure

Judgement Text

1 M/S GLOBAL COMMODITIES INDIA PVT LTD ITA 4594/MUM/2013 G IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G, MUMBAI . . . . . . . . , ! ! ! ! '!! '!! '!! '!! ! ! ! ! , # # # # BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER . : . : . : . : 4 44 45 55 594 9494 94/ // / / // / 2013 ) ! A.Y. 2008-09 ITA NO. : 4594/MUM/2013 (ASSESSMENT YEARS: 2008-09) ACIT, CIR. -6(3), R. NO. 522, 5 TH FLOOR, AAYAKAR BHAVAN, M K ROAD, MUMBAI -400 020 VS M/S GLOBAL COMMODITIES INDIA PVT LTD, NO. 1, C-BLOCK, MODERN CENTRE, 101, K K MARG, MAHALAXMI, MUMBAI -400 011 * .: PAN: AACCR 6675 H *+ (APPELLANT) ,-*+ (RESPONDENT) APPELLANT BY : SHRI R N DSOUZA RESPONDENT BY : SHRI ASHISH TBADEER )!./0 /DATE OF HEARING : 12-11-2014 12 ./0/ DATE OF PRONOUNCEMENT : 19 -11-2014 3 3 3 3 O R D E R '!!! '!!! '!!! '!!! , : :: : PER VIVEK VARMA, JM: INSTANT APPEAL IS AGAINST THE ORDER OF THE CIT(A) 12, MUMBAI, DATED 06.03.202, WHEREIN, THE SOLITARY ISSUE RAISED BY TH E DEPARTMENT IS AGAINST THE ALLOWANCE OF RS. 25,00,000/- AS REVENUE EXPENDITURE . 2. THE FACTS ARE THAT THE ASSESSEE IS A MEMBER OF I NDIAN ENERGY EXCHANGE (IN SHORT IEX) LTD. AND THE ASSESSEE HAS CHARGED TH E SUM OF RS. 25,00,000/- AS SUBSCRIPTION AMOUNT . ON THE OTHER HAND, THE AO PLA CING RELIANCE ON THE DECISION OF TECHNO SHARES & STOCKS LTD VS CIT [(201 0) 9 SCC 410] REPORTED IN 327 ITR 323, WHEREIN THE HONBLE SUPREME COURT HAS HELD THE RIGHT TO HOLD THE 2 M/S GLOBAL COMMODITIES INDIA PVT LTD ITA 4594/MUM/2013 STOCK EXCHANGE CARD AS A BUSINESS RIGHT, ON WHICH D EPRECIATION COULD BE CLAIMED, DISALLOWED THE SAME AND TREATED IT AS A CA PITAL ASSET. TECHNO SHARES & STOCKS LTD. V. CIT, (2010) 9 SCC 41 0 3. THE ASSESSEE APPROACHED THE CIT(A), WHO ON CONSI DERING THE FACTS HELD THE MEMBERSHIP SUBSCRIPTION OF IEX AS REVENUE AND A LLOWED THE CLAIM OF THE ASSESSEE. 4. AGAINST THIS ORDER, THE DEPARTMENT IS IN APPEAL BEFORE THE ITAT. 5. BEFORE US THE DR SUPPORTED THE ORDER OF THE AO, WHEREAS, THE AR SUPPORTED THE ORDER OF THE CIT(A). 6. WE HAVE HEARD THE ARGUMENTS AND HAVE PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AND THE PAPERS APPENDED IN THE APB. APB 1, WE FIND THAT THERE IS A RECEIPT FROM IEX, WHEREIN THERE IS A BRE AKUP OF DIFFERENT KINDS OF EXPENSES, WHICH ARE AS UNDER: ADMISSION FEE 20,00,000 SECURITY DEPOSIT 25,00,000 ANNUAL SUBSCRIPTION 5,00,000 50,00,000 7. SINCE THE CIT(A) HAS ALLOWED RS. 25,00,000/-, TA KING THE EXPENDITURE AS A SUBSCRIPTION, THEN IN OUR OPINION THE CIT(A) COMM ITTED AN ERROR, BECAUSE, THE SUBSCRIPTION FIGURE IS AT RS. 5,00,000/- AND NOT RS . 25,00,000/-. 8. IN SUCH A CIRCUMSTANCE, WE ARE OF THE OPINION TH AT TO IRON OUT THE INFIRMITY, IT WOULD BE APPROPRIATE THAT WE SET ASID E THE ORDER OF THE CIT(A) AND RESTORE THE ISSUE TO THE FILE OF THE AO, WHO SHALL ADJUDICATE AFRESH ON THE ISSUE OF MEMBERSHIP, SUBSCRIPTION AND SECURITY DEPOSIT AN D COME TO A CONCLUSION A PER LAW AND AS PER THE DECISIONS OF THE HIGHER JUDI CIAL FORA. 9. IN THE RESULT, THE APPEAL FILED BY THE DEPARTME NT IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 3 M/S GLOBAL COMMODITIES INDIA PVT LTD ITA 4594/MUM/2013 ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH NOVEMBER, 2014. SD/- SD/- ( . . . . . . . . ) ('!! ! '!! ! '!! ! '!! !) (R C SHARMA) (VIVEK VARMA) ACCOUNTANT MEMBER J UDICIAL MEMBER MUMBAI, DATE: 19 TH NOVEMBER, 2014 ,// COPY TO:- 1) *+/ THE APPELLANT. 2) ,-*+/ THE RESPONDENT. 3) THE CIT (A)-12, MUMBAI. 4) 6 CIT-17 , MUMBAI / THE CIT-17, MUMBAI. 5) '!78,/) G , , / THE D.R. G BENCH, MUMBAI. 6) 89: COPY TO GUARD FILE. 3) / BY ORDER / / TRUE COPY / / [ ;/<= , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI *?@<) !.). * CHAVAN, SR. PS