SANAT M DALAL SECURITIES P.LTD, MUMBAI V. CIT(A)-14, MUMBAI

ITA 5568/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2905 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2016
• Appeal Filed By: Assessee
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 03-09-2014
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• Assessee Lawyers: N S BHIMANI
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & RAMLAL NEGI (JM) I.T.A. NO. 5568 /MUM/20 14 (ASSESSMENT YEAR 20 08 - 09 ) M/S. SANAT M. DALAL SECURITIES P. LTD. EXAMINER PRESS BUILDING DALAL STREET, FORT MUMBAI - 400 001. VS. ITO(TDS) - 3(2) ROOM NO. 910 SMT.K.G. MITTAL AYURVEDIC HOSPITAL BUILDING CHARNI ROAD MUMBAI - 400 002. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAFCS1400A ASSESSEE BY SHRI N.S. BHIMANI DEPARTMENT BY S HRI SUMAN KUMAR DATE OF HEARING 3.10 . 201 6 DA TE OF PRONOUNCEMENT 3.10. 201 6 O R D E R PER B.R. BASKARAN (AM) : - THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 24.6.2016 PASSED BY LEARNED CIT(A) - 14, MUMBAI FOR A.Y. 2008 - 09 CONFIRMING THE ORDER PASSED BY THE ASSESSING OFFICER U/S. 201(1) AND 201(1A) OF THE INCOME TAX ACT. 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSING OFFICER TREATED THE ASSESSEE AS ASSESSEE IN DEFAULT SINCE THE ASSESSEE DID NOT DEDUCT TAX AT SOURCE ON THE TRANSACTION CHARGES PAID TO THE STOCK EXCHANGE. THE ASSESSING OFFICER TOOK THE VIEW THAT THE ASSESSEE SHOULD HAVE DEDUCTED TAX AT SOURCE U/S. 194J OF THE ACT ON THE AMOUNT OF ` 4,37,645/ - PAID BY THE ASSESSEE TO THE STOCK EXCHANGE. ACCORDINGLY THE ASSESSING OFFICER RAISED THE DEMAND U/S. 201(1 ) OF THE ACT AND LEVIED INTEREST U/S. 201(1A) OF THE ACT . LEARNED CIT(A) ALSO CONFIRMED THE SAME. SANAT M. DALAL SECURITIES P. LTD. 2 3. WE HAVE NOTICED THAT THE ABOVE SAID ISSUE HAS SINCE BEEN DECIDED BY HON'BLE SUPREME COURT IN FAVOUR OF THE ASSESSEE IN THE CASE OF CIT VS. KOTAK SECURITIE S LTD. (2016) 384 ITR 1, WHEREIN IT WAS HELD THAT THE TRANSACTION CHARGES PAID TO THE STOCK E XCHANGE IS FOR PROVIDING FACILITY AND IT IS NOT FEES FOR TECHNICAL SERVICES AND HENCE NO TAX IS REQUIRED TO BE DEDUCTED U/S. 194J OF THE ACT. ACCORDINGLY , FOLLOWIN G THE DECISION RENDERED BY HON'BLE SUPREME COURT(SUPRA), WE SET ASIDE THE ORDER PASSED BY LEARNED CIT(A) AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED DEMAND RAISED UPON THE ASSESSEE U/S. 201(1) & 201(1A) OF THE ACT. 4. IN THE RESULT, APPEAL FIL ED BY THE ASSESSEE IS ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 3.10 .2016 SD/ - SD/ - (RAMLAL NEGI ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 3 / 10 / 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI