DCIT 4(1), MUMBAI V. CHIMANLAL MANEKLAL SECURITIES P.LTD, MUMBAI

ITA 5926/MUM/2010

• Counselvise Citation: 592619914 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 28-07-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JI TENDRA YADAV

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C,MUMBAI BEFORE SHRI D. MANMOHAN (VICE-PRESIDENT) & SHRI R.S. SYAL (ACCOUNTANT MEMBER) I.T.A.NO.5926/MUM/2010 (A.Y.2007-08) ASSTT. COMMR. OF INCOME-TAX-4(1),, 6 TH FLOOR, ROOM NO.640, AAYKAR BHAVAN, MUMBAI-400020. VS. CHIMANLAL MANECKLAL SECURITIES PVT. LTD., 11, RAJA BAHADUR BLDG., 1 ST FLOOR, 45, M.P. SHETTY MARG, FORT, MUMBAI-400 023. APPELLANT RESPONDENT APPELLANT BY SHRI MANDAR VAIDYA. RESPONDENT BY SHRI J ITENDRA YADAV. DATE OF HEARING 24 - 10 - 2011 DATE OF PRONOUNCEMENT 28 - 10 - 2011 O R D E R PER R.S. SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 14-05-2010 IN RELATION TO ASSESSMENT YEAR 2007-0 8. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DELETION OF DISALLOWANCE U/S.40(A)(IA) AMOUNTING TO RS.31,91,485/- MADE ON ACCOUNT OF PAYMENTS TO ARBIT RAGERS/JOBBERS FOR NON- DEDUCTION OF TAX AT SOURCE. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS A MEMBER OF BOMBAY STOCK EXCHANGE AND NATIONAL STOCK EXCHANGE. IT TOOK ADVANTAGE BETWEEN THE PRICE DIFFERENCES OF THE STOCK ON TWO S TOCK EXCHANGES. THE PRICE ITA NO.5926/M/10. CHIMANLAL MANEKLAL SECURITIES P.LTD. 2 DIFFERENCE ARISING BETWEEN THE BUYING AND SELLING R ATES CALLED AS ARBITRAGE/JOBBING PROFIT OR LOSS WAS SHARED BY THE ASSESSEE. THE AO HELD THAT PAYMENT MADE TO JOBBERS AMOUNTING TO RS.31,91,485/- WAS LIABLE FOR DEDUCTION OF TAX AT SOURCE U/S.194C. HAVING NOT DONE SO, THE AO MADE DISALLOWANCE OF THE AMOUNT U/S.40(A)(IA). THE LD. CIT(A), FOLLOWING HIS OWN ORDER FOR THE IMMEDIATELY PRECEDING ASSESSMENT YEAR, DECIDED THE ISSUE IN ASS ESSEES FAVOUR. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE IMMEDIATELY PREC EDING ASSESSMENT YEAR OF THE ASSESSEE CAME UP FOR ADJUDICATION BEFORE THE TRIBUN AL IN ITA NO.3009/MUM/2009. VIDE ORDER DATED 14-01-2011, THE TRIBUNAL HAS APPROVED THE VIEW TAKEN BY THE LD. CIT(A) IN DELETING THE DI SALLOWANCE U/S.40(A)(IA). A DETAILED DISCUSSION HAS BEEN MADE ABOUT THE NATURE OF PAYMENT AND OTHER IMPORTANT ASPECTS IN THE SAID ORDER, A COPY OF WHIC H IS AVAILABLE ON RECORD. SINCE THE DELETION OF ADDITION IN THE CURRENT YEAR BY THE LD. CIT(A) IS BASED ON HIS FINDING FOR THE IMMEDIATELY PRECEDING ASSESSMENT YE AR, WHICH ISSUE HAS ALREADY BEEN DECIDED BY THE TRIBUNAL IN ASSESSEES FAVOUR, WE ARE OF THE CONSIDERED OPINION THAT NO INTERFERENCE IS WARRANTED IN THE IM PUGNED ORDER ON THIS SCORE. RESPECTFULLY FOLLOWING THE PRECEDENT, WE APPROVE TH E VIEW TAKEN BY THE LD. CIT(A). 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THE 28TH DAY OF OCTOBER, 2011. SD/- SD/- (D. MANMOHAN) (R.S. SYAL) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI: 28TH OCTOBER , 2011. ITA NO.5926/M/10. CHIMANLAL MANEKLAL SECURITIES P.LTD. 3 NG: COPY TO : 1. DEPARTMENT. 2.ASSESSEE. 3 CIT(A)-8,MUMBAI. 4 CIT,CITY-4,MUMBAI. 5.DR,C BENCH,MUMBAI. 6.MASTER FILE. (TRUE COPY) BY ORDER, ASST.REGISTRAR, ITAT, MUMBAI. ITA NO.5926/M/10. CHIMANLAL MANEKLAL SECURITIES P.LTD. 4 DETAILS DATE INITIALS DESIGN ATION 1 . DRAFT DICTATED ON 24 - 1 0 - 2011 SR.PS/ 2 . D RAFT PLACED BEFORE AUTHOR 24 - 1 0 - 2011 SR.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.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8 . DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9 . DATE O N WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER &