DEPOSIT INSURANCE & CREDIT GUARANEEE CORPORATION ( DICGC), MUMBAI V. ADDL CIT LTU, MUMBAI

ITA 6830/MUM/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4271 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 17-12-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 08-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SITARAM PAREKH SHRI A K KARDAM

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI . . , , BEFORE S/SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, J UDICIAL MEMBER ./ I.T.A. NO. 6830 /MUM/ 2012 ( / ASSESSMENT YEAR : 2009 - 10 ) M/S DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION, 2 ND FLOOR, RBI BUILDING, OPP MUMBAI CENTRAL STATION, BYCULLA, MUMBAI - 400008 / VS. AD DL. COMMISSIONER OF INCOME TAX LTU, MUMBAI. ./ PAN : ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AAACD2094E / APPELLANT BY : SHRI SITARAM PAREKH / RESPONDENT BY : SHRI A K KARDAM / DATE OF HEARING : 17 .12. 2015 / DATE OF PRONOUNCEMENT : 1. 01.2016 O R D E R PER B.R.BASKARAN,AM : THE APPEAL FILED BY THE ASSESSEE IS DIREC TED AGAINST THE ORDER DATED 6.8.2012 PASSED BY THE LD.CIT(A) - 24, MUMBAI AND IT RELATES TO THE ASSESSMENT YEAR 2009 - 10. 2. AT THE TIME OF HEARING, THE LD. C OUNSEL APPEARING FOR THE ASSESSEE DID NOT PRESS GROUNDS NUMBERED AS 1,2 AND 3 AND HENCE, THEY ARE DI SMISSED AS NOT PRESSED. THE REMAINING GROUNDS RELATE TO THE ITA NO. 6830 / MUM/ 2012 2 DISALLOWANCE OF RS.13,58,086 / - MADE UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961. 3. THE LD. C OUNSEL SUBMITTED THAT THE ASSESSEE HAS DULY DEDUCTED TAX AT SOURCE FROM THE IMPUGNED PAYMENT , BEING TRANSACTION CHARGES, AND HAS ALSO DULY REMITTED THE SAME WITHIN THE DUE DATE PRESCRIBED UNDER THE ACT. HOWEVER, WHILE FILING EXPLANATION BEFORE THE AO , THE ASSESSEE WRONGLY FILED A LETTER RELATING TO ASSESSMENT YEAR 2006 - 07 , WHEREIN THE ASSESSEE HAD TAKEN A STAND THAT THE AMOUNT PAID AS TRANSACTION CHARGES TO CLEARING CORPORATION OF INDIA LIMITED (CCIL) IS NOT LIABLE FOR DEDUCTION OF TAX AT SOURCE. THE AO ACCORDINGLY MADE DISALLOWANCE U/S 40(A)(IA) OF THE ACT BY FOLLOWING THE ORDERS PASSED BY HIM IN THE EARLIER YEARS . HOWEVER, THE AO FAILED TO NOTE THAT THE ASSESSEE HAD DEDUCTED AND REMITTED THE TDS ON TRANSACTION CHARGES PAID TO CCIL DURING THE INSTANT YEAR. THE LD. CIT(A) ALSO CONFIRMED THE DISALLOWANCE BY PLACING RELIANCE ON THE LETTER RELATIN G TO AY 2006 - 07 FILED BY THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS. HE SUBMITTED THAT THE FACTS REMAIN THAT THE ASSESSEE HAS ACTUALLY DEDUCED TAX AT SOURCE FROM THE AMOUNT OF TRANSACTION CHARGES PAID TO CCIL AND HENCE, THE DISALLOWANCE MADE U/S 40(A)(IA) OF THE ACT IS LIABLE TO BE DELETED . 4 . THE LD. DR SUBMITTED THAT THE SUBMISSIONS MADE BY THE LD.AR REQUIRE VERIFICATION AT THE END OF THE AO. 5 . HAVING HEARD THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THIS ISSUE REQUIRES FRESH EXAM IN A TION AT THE END OF THE AO , SINCE THE ASSESSEE HAS CLAIMED THAT IT HAS DULY DEDUCTED TAX AT SOURCE FROM THE AMOUNT OF TRANSACTION CHARGE S PAID TO CCIL AND ALSO REMITTED THE SAME . WE NOTICE THAT THIS FACT HAS ESCAPED THE ATTENTION OF THE TAX AUTHORITIES AND THE ASSESSEE HAS ALSO FAILED TO BRING THE SAME ON RECORD DURING THE COURSE OF ITA NO. 6830 / MUM/ 2012 3 ASSESSMENT PROCEEDINGS. ACCORDINGLY , WE SET ASIDE THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE AO WITH A DIRECTION TO EXAMINE THIS ISSUE AF RESH BY DULY CONSIDERING THE EVIDENCE S WITH REGARD TO THE DEDUCTION AND REMITTANCE OF TAX AT SOURCE / EXPLANATIONS THAT MAY BE FURNISHED BY THE ASSESSEE AND TAKE APPROPRIATE DECISION IN ACCO RDANCE WITH LAW. 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1ST JAN,2016 SD SD ( / SANDEEP GOSAIN) ( . . / B.R.B ASKARAN) /JUDICIAL MEMBER /ACCOUNTANT MEMBER MUMBAI ; DATED 1 ST JAN , 2016. . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , /ITAT, MUMBAI