DCIT CEN CIR 37, MUMBAI V. NAMAN SECURITIES FINANCE P. LTD, MUMBAI

ITA 6533/MUM/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8661 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-10-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 06-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAVIN VARMA
• Assessee Lawyers: V C SHAH
• Section: 115JB

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI . , BEFORE SHRI B.R.MITTAL , J M & SHRI B.R.JAIN , A M ITA NO. 6533 / MUM/ 20 1 0 ( ASSESSMENT YEAR : 200 7 - 20 0 8 ) DCIT, CENTRAL CIRCLE - 37, MUMBAI - 400 020 VS. M/S NAMAN SECURITIES FINANCE PVT. LTD., 415, PREKH MARKET, 39 J S S ROAD, OPERA HOUSE, MUMBAI - 400 004. PAN/GIR NO. : AAACN 1917 G ( APPELLANT ) .. ( RESPONDENT ) /A SSESSEE BY : MR. V.C.SHAH /RE VENUE BY : MR. PRAVIN VARMA DATE OF HEARING : 10 TH OCT ., 2012 DATE OF PRONOUNCEM ENT : 10 TH OCT.,2012 O R D E R PER B.R.MITTAL (J.M. ) : THE DEPARTMENT HAS FILED THIS APPEAL FOR ASSESSMENT YEAR 2007 - 20 08 AGAINST ORDER OF CIT(A), DATED 2 - 7 - 2010 ON FOLLOWING GROUNDS : - O N THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN CONCLUDING THAT SINCE THERE IS NO PROHIBITION IN SECTION 115JB FOR ALLOWING REBATE U/S 88E, THE ASSESSEE IS ENTITLED TO CLAIM DEDUCTION U/S 88E FROM THE TAX WORKED U/S 115JB. ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN CONCLUDING THAT REBATE U/S 88E IS TO BE ALLOWED AS PER COLUMN - 6 TO WORK OUT BALANCE TAX PAYABLE AS COLUMN - 7 OF PART - B TTI(ITR - 6) . ITA NO. 6533 /20 1 0 2 2. AT THE TIME OF HEARING, LEARNED AR SUBMITTED THAT THE ISSUE INVOLVED IN TH IS APPEAL IS COVERED BY THE DECISION OF THE HONBLE KARNATAKA HIGH COURT, RENDERED IN ITA NO. 434/2010 (THE CIT & ANOTHER VS. M/S HORIZON CAPITAL LTD.) VIDE JUDGMENT DATED 24 TH OCTOBER, 2011 . 3. L EANED D R HAS NOT DISPUTED THE ABOVE CONTENTION OF LEARNED AR BUT SAVE AND EXCEPT RELYING ON THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF LEARNED REPRESENTATIVES OF BOTH THE PARTIES AND ORDERS OF THE AUTHORITIES BELOW. WE OBSERVE THAT IN THE CASE BEFORE US, THE TAX PAYABLE BY ASSESSE E AS PER NORMAL PROVISIONS OF THE ACT, IS NIL AFTER DEDUCTING REBATE U/S. 88E OF THE ACT. ACCORDINGLY, THE INCOME OF THE ASSESSEE WAS ALSO COMPUTED UNDER SECTION 115JB OF THE ACT. THE ASSESSING OFFICER WHILE MAKING THE ASSESSMENT UNDER SECTION 115JB OF T HE ACT, STATED THAT REBATE UNDER SECTION 88E OF THE ACT IS NOT ALLOWABLE TO THE ASSESSEE WHILE COMPUTATION UNDER SECTION 115JB OF THE ACT. H OWEVER, LEARNED CIT(A) DIRECTED THE ASSESSING OFFICER TO ALLOW THE REBATE UNDER SECTION 88E TO THE ASSESSEE AGAINST THE INCOME COMPUTED UNDER MAT AS PER PROVISION UNDER SECTION 115JB OF THE ACT. A SIMILAR ISSUE HAS COME UP BEFORE THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF M/S HORIZON CAPITAL LIMITED (SUPRA) . T HE HONBLE HIGH COURT WHILE CONFIRMING THE ORDER OF TRIB UNAL IN THE ABOVE CASE, HAS HELD THAT WHILE COMPUTING THE TOTAL INCOME UNDER SECTION 115JB OF THE ACT, THE ASSESSEE IS ENTITLED TO ITA NO. 6533 /20 1 0 3 CLAIM DEDUCTION OF THE AMOUNT EQUAL TO THE STT PAID BY HIM IN RESPECT OF THE TAXABLE SECURITIES TRANSACTIONS ENTERED INTO IN THE COURSE OF BUSINESS DURING THE PREVIOUS YEAR. SINCE THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF M/S HORIZON CAPITAL LIMITED (SUPRA) , WE DO NOT FIND ANY INFIRMITY IN THE ORD ER OF THE LEARNED CIT(A). HENCE, WE UPHOLD THE ORDER OF LEARNED CIT(A) AND REJECT THE GROUNDS TAKEN BY THE DEPARTMENT. 6 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF OCT . , 2012. 10 TH OCT . , 2012 SD/ - SD/ - ( . ) ( B.R.JAIN ) ( ) ( B.R.MITTAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 10 TH OCT ./ 2012. /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RE SPONDENT. 3. / THE CIT(A) - X, MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI