DCIT 4(1), MUMBAI V. ANGEL CAPITAL 7 DEBT MARKET LTD, MUMBAI

ITA 6000/MUM/2010

• Counselvise Citation: 600019914 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 02-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K B MENON
• Assessee Lawyers: D V LAKHANI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: MUMBAI BEFORE SHRI G.E. VEERBHADRAPPA, PRESIDENT AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.6000/MUM/2010 (ASSESSMENT YEAR: 2007-08) ASSTT. COMMISSIONER OF INCOME TAX -4(1), 6TH FLOOR, ROOM NO.640, AAYAKAR BHAVAN, MUMBAI -400 020 ....... APPELLANT VS ANGEL CAPITAL AND DEBT MARKET LTD., G-1, AKRUTI TRADE CENTRE, ROAD NO.7, MIDC, ANDHERI (E), MUMBAI -400 093 ..... RESPONDENT PAN: AAACS 6308 J APPELLANT BY: SHRI P.K.B. MENON RESPONDENT BY: SHRI D.V. LAKHANI DATE OF HEARING: 24.11.2011 DATE OF PRONOUNCEMENT: 24.11.2011 O R D E R PER R.S. PADVEKAR, JM IN THIS APPEAL THE REVENUE HAS CHALLENGED THE IMPUG NED ORDER OF THE LD. CIT (A) -8, MUMBAI DATED 03.05.2010 FOR THE A.Y. 2007-08. THE FIRST ISSUE WHETHER VSAT & LEASELINE CHARGES PA ID TO STOCK EXCHANGE ARE SUBJECTED TO THE TDS PROVISIONS AND WH ETHER FOR NON- DEDUCTION OF THE TDS, CAN DISALLOWANCE OF THE SAID EXPENDITURE BE MADE INVOKING THE PROVISIONS OF SEC.40A(IA) OF THE ACT. 2. WE HAVE HEARD THE PARTIES. THE LD. COUNSEL SUBM ITS THAT THE ASSESSEE-COMPANY IS IN THE SHARE TRADING AND SHARE BROKING. THE ISSUE OF VSAT AND LEASELINE CHARGES ARE COVERED IN FAVOUR OF THE ASSESSEE IN ITS OWN CASE FOR THE A.Y. 2005-06. THE LD. COUNSEL HAS FILED THE COPY OF THE TRIBUNAL ORDER IN ASSESSEES OWN CASE IN ITA NO.5464/M/2008 DATED 21.8.2009. THE TRIBUNAL HAS D ECIDED THIS ISSUE FOLLOWING THE DECISIONS OF THE CO-ORDINATE BE NCHES AS UNDER:- ITA 6000/MUM/2010 ANGEL CAPITAL AND DEBT MARKET LTD. 2 (I) EXHIBITORS INTERNATIONAL (INDIA) P. LTD. VS. ADDL. CIT - 118 TTJ (DEL) 652; (II) SPECIFIC INTERNET (INDIA) P. LTD. VS. ITO - 27 SOT 523 (MUM) WE, THEREFORE, FIND NO REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT (A). ACCORDINGLY, FIRST ISSUE INVOLVED IN RESPECTI VE GROUNDS TAKEN BY THE REVENUE ARE DISMISSED. 3. NEXT ISSUE IN GROUND NO.2 IS CONCERNED, I.E. IN RESPECT OF PENALTY OF ` 2,60,895/- PAID BY THE ASSESSEE FOR VIOLATION OF T HE BYE-LAWS OF THE STOCK EXCHANGE. 4. WE HAVE HEARD THE PARTIES. WE FIND THAT THIS IS SUE IS ALSO COVERED IN FAVOUR OF THE ASSESSEE IN ITA NO.5119/MU M/2009 ORDER DATED 26.8.2011. THE OPERATIVE PART OF THE TRIBUNA L ORDER IS AS UNDER:- 4. LEARNED REPRESENTATIVE FAIRLY AGREE THAT THE I SSUE IS COVERED BY THE DECISION OF A COORDINATE BENCH OF TH IS TRIBUNAL IN THE CASE OF DCIT VS. BRICS SECURITIES LIMITED IN IT A NO.5504/M/2009 FOR THE ASSESSMENT YEAR 2006-07 ORDE R DATED 11.6.2010, WHEREIN, ON SIMILAR FACTS, THE TRIBUNAL FOLLOWING THE DECISION OF ANOTHER COORDINATE BENCH IN THE CASE OF DCIT VS. ENAM SECURITIES PRIVATE LIMITED DATED 14.5.2010 IN ITA NO.4178/M/2009, IT WAS HELD THAT PENALTY/FEES PAID BY THE ASSESSEE TO BSE, STOCK HOLDING CORPORATION OF INDIA AND NSCCI CANNOT BE DISALLOWED BY RESORTING TO EXPLANATION TO SECTION 37(1). SIMILAR ISSUE HAS ALSO BEEN TAKEN IN GOLDCREST CAPI TAL MARKETS LTD VS ITO(2010) 36 DTR (MUMBAI)(TRI) 177. RESPECTF ULLY FOLLOWING THE PRECEDENTS, WE UPHOLD THE GRIEVANCE OF THE ASSE SSEE AND DIRECT THE AO TO DELETE THE DISALLOWANCE OF RS.37,2 94/-. 5. WE, THEREFORE, FOLLOWING THE FINDINGS OF THE TRI BUNAL IN THE A.Y. 2006-07 (SUPRA) CONFIRMED THE ORDER OF THE LD. CIT (A) AND DISMISS GROUND NO.2 OF THE REVENUE. ITA 6000/MUM/2010 ANGEL CAPITAL AND DEBT MARKET LTD. 3 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 24.11.2011. SD/- SD/- ( G.E. VEERBHADRAPPA ) PRESIDENT ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE : 24TH NOVEMBER, 2011 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) -8, MUMBAI. 4) THE CIT-4, MUMBAI. 5) THE D.R. A BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN