DCIT, Jaipur V. JAIPUR STOCK EXCHANGE LTD., Jaipur

ITA 57/JPR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5596 (ITAT-JAIPUR)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 19-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: USHA SHRMA

Judgement Text

ITA NO. 57/JP/15 THE ACIT CIRCLE-6, JAIPUR V. M/S JAIPUR STOCK EXCHA NGE LTD. 1 IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 57/JP/15 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 LQUOKBZ DH RKJH[K DATE OF HEARING : 22 . 12.2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 08/01/2016 VKNS'K@ ORDER FU/KKZFJRH DH VKSJ LS@ ASSESSEE BY : SMT. USHA SHRMA JKTLO DH VKSJ LS@ REVENUE BY : SH.RAJENDRA SINGH(JCIT) PER SHRI VIKRAM SINGH YADAV, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-II, JAIPUR DATED 17.11.2014 WHEREIN THE FOLLOWING GROUND OF APPEAL HAS BEEN TAKEN :- DCIT CIRCLE - 6, JAIPUR CUKE V/S. M/S JAIPUR STOCK EXCHANGE LTD.MALVIYA NAGAR, JAIPUR LFKK;H YS[KK LA-@THVKJBZVKJ LA-@ PAN NO. AABCJ 0362 L ITA NO. 57/JP/15 THE ACIT CIRCLE-6, JAIPUR V. M/S JAIPUR STOCK EXCHA NGE LTD. 2 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A)HAS ERRED IN DELETING THE ADDITION M ADE ON ACCOUNT OF ANNUAL LISTING FEES RECEIVED FROM ITS MEMBER ON ACC RUAL BASIS. 2. AT THE OUTSET, THE AUTHORISED REPRESENTATIVE OF THE ASSESSEE COMPANY SUBMITTED THAT THE ISSUE IN QUESTION IS COV ERED IN FAVOUR OF THE ASSESSEE BY ITATS JUDGEMENT IN ASSESSEES OWN CASE FOR A.Y. 2007-08, 2008-09, 2009-10 AND 2010-11. 2.1 THE LD. CIT(A) FOLLOWING THE EARLIER ORDERS OF THE COORDINATE BENCH HAS DELETED THE ADDITION. THE RELEVANT OBSER VATIONS OF THE LD. CIT(A) ARE REPRODUCED AS UNDER: I HAVE CONSIDERED THE FACTS OF THE CASE, ASSESSMEN T ORDER AND SUBMISSIONS OF THE APPELLANT. SAME ISSUE WAS INVOLV ED IN THE CASE OF APPELLANT IN AYS 2006-07, 2007-08, 2009-10 AND 2010 -11. THE ITAT, JAIPUR HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSE SSEE FOR AYS. 2006-07 (ITA NO. 703/JP/2009) AND 2007-08 (ITA NO. 61/JP/10 ). THE CIT(A) HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE FO R AYS 2009-10 AND 2010-11. THE RELEVANT EXTRACT OF THE ORDER OF ITAT , JAIPUR FOR AY 2007- 08 IN ITA NO.661/JP/2010 IS GIVEN BELOW: AFTER HAVING GONE THROUGH THE ABOVE DECISIONS, WE FIND THAT THERE IS SUBSTANCE IN THE ABOVE CONTENTION OF THE LD. AR. THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF CIT VS. SHOORJI VALL ABHADAS & CO. (SUPRA) HAS HELD THAT IF ANY ACCRUAL SYSTEM, THE PROBABILIT Y OR IMPROBABILITY OF REALIZATION HAS ALSO TO BE CONSIDERED IN A REALISTI C MANNER. IN THE CASE OF CHAINROOP SAMPATRAM VS. CIT, SUPRA, THE HONBLE APEX COURT HELD THAT WHILE ANTICIPATED LOSS IS TAKEN INTO ACCOUNT, ANTICIPATED PROFIT IS NOT BROUGHT IN ACCOUNT AS NO PRUDENT TRADE WOULD CASE T O SHOW INCREASED ITA NO. 57/JP/15 THE ACIT CIRCLE-6, JAIPUR V. M/S JAIPUR STOCK EXCHA NGE LTD. 3 PROFIT BEFORE ITS ACTUAL REALIZATION. THE SAME PRIN CIPLE HAS BEEN FOLLOWED BY MUMBAI BENCH TRIBUNAL IN ITS RECENT DECISION IN THE CASE OF WESTERN MAHARASHTRA DEVELOPMENT CORP. LTD. VS. DCIT (SUPRA) . THE FIRST APPELLATE ORDER ON THE ISSUE IS COMPREHE NSIVE AND REASONED ONE. WE ARE THEREFORE, NOT INCLINED TO IN TERFERE WITH THE ORDER OF THE LD. CIT(A) WHICH IS UPHELD. THUS GROUND NO.2 OF THE REVENUE IS REJECTED. SINCE THE FACTS ARE IDENTICAL IN THIS YEAR, FOLLOWI NG THE ABOVE ORDERS, THE AO IS DIRECTED TO DELETE THE ABOVE ADDI TION. THE GROUND IS ALLOWED. 2.2 THE LD. DR IS HEARD. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. RESPECTFULLY FOLLOWING THE CO ORDINATE BENCHS DECISION IN EARLIER YEARS IN ASSESSEES OWN CASE (S UPRA), WE UPHELD THE ORDER OF THE LD. CIT(A). THUS THE G ROUND TAKEN BY THE REVENUE IS DISMISSED. IN THE RESULT, THE APPEAL FILED BY THE REV ENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08/01/ 2016. SD/- SD/- VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 08/01 /2016 ITA NO. 57/JP/15 THE ACIT CIRCLE-6, JAIPUR V. M/S JAIPUR STOCK EXCHA NGE LTD. 4 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT THE DCIT, CIRCLE-6, JAIPUR. 2. THE RESPONDENT M/S JAIPUR STOCK EXCHANGE LTD. 3. THE CIT(A)-II, JAIPUR. 4. THE CIT-II. JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO.57/JP/15) VKNS'KKUQLKJ@ BY ORDER, ;D IATHDKJ@ ASSISTANT. REGISTRAR