Appeal details
Counselvise Citation
[2010] 136 COUNSELVISE.COM (IT) 1760 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
8 month(s) 4 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
11-06-2010
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
F
Assessment Year
2006-2007
Appeal Filed On
07-10-2009
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SMT.ASHA VIJAYARAGHAVAN , JM ITA NO.5504/MUM/2009 : ASST.YEAR 2006-2007 THE DY.COMMISSIONER OF INCOME - TAX CIRCLE 4(1) MUMBAI. VS. M/S.BRICS SECURITIES LIMITED SADHANA HOUSE, 1 ST FLOOR 570 P.B.MARG, BEHIND MAHINDRA TOWERS WORLI, MUMBAI 400 018. PA NO.AAACB4908R. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.M.KESHKAMAT RESPONDENT BY : SHRI RAJNIKANT CHARIYARI O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 10.07.2009 IN RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. ONLY GROUND IS AGAINST THE DELETION OF ADDITION MADE ON ACCOUNT OF PENALTY OF RS.13,13,787 PAID BY THE ASSESEE TO SHARE HOLDIN G CORPORATION LIMITED, BSE AND NSCCI ON VIOLATION OF THE BYELAWS OF THE STOCK EXCHANGE. BRIEFLY STATED THE FACTS OF THIS GROUND ARE THAT THE ASSESSEE PAID FIN ES FOR NON / PARTIAL COLLECTION OF MARGIN CHARGED BY BOMBAY STOCK EXCHANGE AGGREGATING TO RS.13,13,787, WHICH AMOUNT WAS CLAIMED AS DEDUCTION. ON BEING CALLED UP ON TO EXPLAIN AS TO WHY SUCH PENALTY BE NOT DISALLOWED, THE ASSESSEE STATED THAT THIS AMOUNT WAS TOWARDS THE PROCEDURAL FAILURE AND NOT FOR INFRINGEMENT OF ANY LAW. NOT SATISFIED THE ASSESSING OFFICER INVOKED EXPLANATION TO SECTION 37(1) AND MADE ADDITION FOR THIS SUM. IN THE FIRST APPEAL, THE LEARNED CIT(A) DELETED THE ADDITI ON. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD IT IS NOTICED THAT THE FACTS AND CIRCUMSTANC ES OF THIS GROUND ARE FULLY COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER PASSED BY TH E MUMBAI BENCH OF THE TRIBUNAL ITA NO.5504/MUM/2009 M/S.BRICS SECURITIES LIMITED. 2 IN DCIT VS. ENAM SECURITIES PRIVATE LIMITED DATED 14.5.2010 IN ITA NO.4178/MUM/2009 IN WHICH, UNDER SIMILAR CIRCUMSTAN CES, IT HAS BEEN HELD THAT PENALTY / FEES PAID BY THE ASSESSEE TO BSE, STOCK H OLDING CORPORATION OF INDIA AND NSCCI CANNOT BE DISALLOWED BY RESORTING TO EXPLANATION TO SECTION 37(1). COPY OF SUCH ORDER WAS PLACED ON RECORD BY THE LEARNED A.R. SIMILAR VIEW HAS BEEN TAKEN IN GOLDCREST CAPITAL MARKETS LTD. VS. ITO [(2010) 36 D TR (MUMBAI) (TRI.) 177] . THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY CONCEDED THAT THE FACTS AND CIRCUMSTANCES OF THE INSTANT APPEAL ARE SIMILAR TO THOSE ALREADY DECIDED BY THE TRIBUNAL IN ABOVE CASES. RESPECTFULLY FOLLOWING THE PRECEDENTS, WE UPHOLD THE VIEW TAKEN BY THE LEARNED CIT(A) ON THIS ISSUE. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 11 TH DAY OF JUNE, 2010 . SD/- SD/- (ASHA VIJAYARAGHAVAN) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 11 TH JUNE, 2010 . DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENTS. 3. THE CIT CONCERNED 4. THE CIT(A)-IV, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.
