ACIT CIR 4(2), MUMBAI V. SATCO SECURITIES AND FINANCIAL SERVICES LTD, MUMBAI

ITA 5971/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55509 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2007-2008
• Appeal Filed On: 30-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 SATCO SECURITIES & FINANCIAL SERVICES LTD IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI H BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI J SUDHAKAR REDDY, AM & SHRI VIJAY PAL RAO, JM ITA NO. 5971/MUM/2010 (ASST YEAR 2007-08 ) THE ASST COMMR OF INCOME TAX CIR 4(2), MUMBAI VS M/S SATCO SECURITIES & FINANCIAL SERVICES LTD MAKHIJA CHAMBERS 196 TURNER ROAD, BANDRA (W) MUMBAI 50 (APPELLANT) (RESPONDENT) PAN NO. AAACS6813N ASSESSEE BY SHRI HARIDAS BHATT REVENUE BY SHRI V VG SHASTRI DT.OF HEARING 10 TH OCT 2011 DT OF PRONOUNCEMENT 14 TH , OCT 2011 PER VIJAY PAL RAO, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 10.5.2010 OF THE CIT(A) FOR THE AY 2007-08. 2 THE REVENUE HAS RAISED VARIOUS GROUNDS IN THIS AP PEAL; HOWEVER, THE ONLY ISSUE ARISES FOR OUR CONSIDERATION AND ADJUDICATIONS IS W HETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) IS JUSTIFIED IN DELETING THE ADDITION MADE ON ACCOUNT OF PENALTY OF RS. 14,24,795/- ON VIOLATION OF BYE-LAWS OF THE STOCK EXCHANGE. 3 WE HAVE HEARD THE LD DR AS WELL AS THE LD AR OF T HE ASSESSEE AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. AT THE OUTSET, WE NOTE THAT THIS ISSUE HAS BEEN CONSIDERED AND DECIDED BY THE TRIBUNAL IN ASSESSEE S OWN CASE FOR THE EARLIER AY 2 SATCO SECURITIES & FINANCIAL SERVICES LTD INCLUDING THE AY 2006-07. THE TRIBUNAL, VIDE ORDER DATED 16.7.2010 IN ASSSSEES OWN CASE FORAY 2006-07 HAS DEALT WITH THIS ISSUE IN PAR AS 5 & 6 AS UNDER: 5. THIS ISSUE HAS BEEN CONSIDERED AND DECIDED BY THIS TRIBUNAL VIDE DATED 17.12.2009 PASSE D IN ASSESSEES OWN CASE IN ITA NO.7012/MUM./2008 FOR THE ASSESSME NT YEAR 2005-06. THIS TRIBUNAL IN PARAGRAPHS 8 AND 9 OF TH E SAID ORDER HAS DECIDED THIS ISSUE AS UNDER : 8. LEARNED REPRESENTATIVES FAIRLY AGREE BEFORE US THAT FACTS AND CIRCUMSTANCES OF THE ABOVE ISSUE ARE MUTA TIS MUTANDIS SIMILAR TO THOSE DECIDED BY THE MUMBAI BEN CHES OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.4289/MUM./2007, FOR A.Y. 2004-05, VIDE ORDER DAT ED 12 TH NOVEMBER 2009, WHEREIN, THE TRIBUNAL REJECTED THE G ROUND OF REVENUE, OBSERVING AS FOLLOWS:- 5. GROUND NO.3 PERTAINS TO ALLOWING THE PENALTY PAID TO STOCK EXCHANGE OF RS.1,51,833/-. THE A.O. DISALLOWED THE AMOUNT STATING THAT THE SAID AMOUNT IS PAID IN VIOLATION TO THE LAW LAID DOWN BY SEBI ACT, 1962 AND ALLIED PROVISIONS WHEREAS THE CIT(A) ALLOW ED THE SAME HOLDING THAT THESE ARE TECHNICAL DEFAULTS IN THE COURSE OF CONDUCT OF EVERYDAY BUSINESS OF THE STOCK EXCHANGE AND RELYING ON THE ORDER FOR A.Y. 2002-03 THE SAME WAS ALLOWED AS THE FACTS ARE SIMIL AR. IT WAS SUBMITTED THAT SIMILAR ISSUE IS DECIDED BY T HE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.4166/MUM/2006 AND ITA NO.4095/MUM/ 2007 WHEREIN IT WAS HELD THAT THE PAYMENTS WERE MADE AS PER THE RULES AND REGULATIONS OF STOCK EXCHANGE WHI LE CONDUCTING BUSINESS OF THE ASSESSEE AND WERE NOT FO R INFRINGEMENT OF LAW. IN LINE WITH THE ORDERS OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2002-03 AND 2003-04 THE ORDER OF THE CIT(A) IS CONFIRMED AND REVENUES GROUND IS REJECTED. 9. WE, FOLLOWING THE AFORESAID DECISION OF THE TRIB UNAL IN ASSESSEES OWN CASE CITED SUPRA, SEE NO REASON TO I NTERFERE WITH THE ORDER OF THE LD. CIT(A) AND THE SAME IS CO NFIRMED. REVENUE FAILS ON THIS GROUND ALSO. 3 SATCO SECURITIES & FINANCIAL SERVICES LTD 6. RESPECTFULLY FOLLOWING, THE DECISION OF THIS TRI BUNAL IN ASSESSEES OWN CASE (SUPRA), WE DECIDE THIS ISSUE A GAINST THE REVENUE AND IN FAVOUR OF THE ASSESSEE. 4 THEREFORE, RESPECTFULLY FOLLOWING THE ORDER OF TH E TRIBUNAL, IN ASSESSEES OWN CASE, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSE E. 5 IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THE 14 TH , DAY OF OCT 2011. SD/ SD/- ( J SUDHAKAR REDDY ) ACCOUNTANT MEMBER ( VIJAY PAL RAO ) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 14 TH ,OCT 2011 RAJ* COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI