ITO, Jaipur V. JSEL SECURITIES LTD., Jaipur

ITA 876/JPR/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5406 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 23-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KAILASH MANGAL JCIT DHK
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO.876/JP/14 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 INCOME TAX OFFICER, WARD 6(1), JAIPUR CUKE VS. M/S JSEL SECURITIES LTD. STOCK EXCHANGE BUILDING, MALVIYA NAGAR, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAACJ 9169 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MANISH AGARWAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY :S HRI KAILASH MANGAL (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 25.02.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 07 /04/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-II, JAIPUR DATED 10.10.2014 WHEREIN THE REVENUE HAS TAK EN FOLLOWING GROUNDS OF APPEAL: (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A)-II, JAIPUR HAS ERRED IN HOLDING THAT THE EXP ENSES DISALLOWED U/S 40(A)(IA) OF THE IT ACT, 1961 DID NOT COMPRISE UNDE R THE CATEGORY OF FURNISHING OF INACCURATE PARTICULARS. (2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A)-II, JAIPUR HAS ERRED IN PLACING RELIANCE ON THE DECISION OF APEX COURT WHICH IS NOT RELEVANT ON THE ADDITION MADE IN THE CASE. ITA NO. 876/JP/14 THE ITO, WARD 6(1), JAIPUR VS. M/S JSEL SECURITIES LTD. JAIPUR 2 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSE SSEE IS A LIMITED COMPANY DULY INCORPORATED UNDER THE PROVISIONS OF THE COMPA NIES ACT, 1956 AND IS A FULLY OWNED SUBSIDIARY OF JAIPUR STOCK EXCHANGE LTD . THE ASSESSEE COMPANY IS A MEMBER OF BOMBAY STOCK EXCHANGE AND PROVIDED SUB-BR OKERSHIP TO MEMBERS OF JAIPUR STOCK EXCHANGE LTD. AND IS HAVING BROKERA GE INCOME. ASSESSEE COMPANY HAD FILED ITS RETURN OF INCOME U/S 139(1) O F INCOME TAX ACT, 1961 AT A TOTAL INCOME OF RS. 37,42,120/- AND THE ASSESSMENT WAS COMPLETED U/S 143(3) VIDE ORDER DATED 8.12.2010 AT AN INCOME OF RS. 78,6 9,243/- BY MAKING DISALLOWANCE OF RS. 41,27,123/- U/S 40(A)(IA) OF TH E INCOME TAX ACT, 1961 ON ACCOUNT OF NON DEDUCTION OF TDS ON PAYMENT MADE TO CDSL. THE AO HAS ALSO INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE INCOME TAX ACT, 1961. 2.1 BEING AGGRIEVED, THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A) WHO VIDE ORDER DATED 14.11.2011 IN APPEAL NO. 521/1 0-11 DISMISSED THE APPEAL OF THE ASSESSEE AND THE ADDITIONS MADE BY LD . AO WAS SUSTAINED. 2.2 SUBSEQUENTLY, THE AO VIDE ITS ORDER DATED 25.03 .2012 LEVIED PENALTY @ 100% AT RS. 12,76,000/- ON THE DISALLOWANCE OF RS. 41,27,123/- MADE U/S 40(A)(IA) BY HOLDING THAT ASSESSEE HAS FURNISHED IN ACCURATE PARTICULARS OF ITS INCOME TO THE EXTENT OF DISALLOWANCE MADE. CHALLENG ING THE SAID PENALTY ORDER, THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A) WHO ALLOWED THE APPEAL OF ASSESSEE VIDE ORDER DATED 10.10.2014 IN A PPEAL NO. 209/13-14 AND DELETED THE PENALTY OF RS. 12,76,000/- LEVIED BY LD . AO. AGAINST THE ORDER OF THE LD. CIT(A), THE DEPARTMENT HAS PREFERRED PRESEN T APPEAL WHICH HAS COME UP FOR HEARING BEFORE THIS BENCH. 3. IT IS NOTED THAT SUBSEQUENTLY, IN THE QUANTUM PR OCEEDINGS, AGAINST THE ORDER OF LD CIT(A) DATED 14.11.2011 IN APPEAL NO. 5 21/10-11, THE APPELLANT ITA NO. 876/JP/14 THE ITO, WARD 6(1), JAIPUR VS. M/S JSEL SECURITIES LTD. JAIPUR 3 CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL AN D THE COORDINATE BENCH VIDE ITS CONSOLIDATED ORDER DATED 29.05.2013 IN ITA NO. 58/JP/2012 HAS REMANDED THE MATTER AFRESH TO THE FILE OF LD CIT(A) . THE RELEVANT FINDINGS ARE REPRODUCED AS UNDER: IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, WE F IND THAT THE COMPLETE RECORD HAS NOT BEEN PRODUCED BEFORE US TO DECIDE TH E QUESTION OF FACT AS RAISED BY THE ASSESSEE IN THESE APPEALS, THEREFORE WE SET ASIDE THE ISSUE OF APPLICABILITY OF SECTION 194J IN RESPECT OF THE PAY MENTS MADE BY THE ASSESSEE TO THESE THREE PARTIES AS WELL AS CHARGING OF INTER EST UNDER SECTION 201(IA) AND DISALLOWANCE UNDER SECTION 40(A)(IA) OF THE IT ACT TO THE RECORD OF LD CIT(A) TO DECIDE THE ISSUE IN THE LIGHT OF VARIOUS DECISIONS RELIED UPON BY EITHER OF THE PARTIES AS WELL AS AFTER VERIFYING RELEVANT FACTS. 4. GIVEN THAT THE MATTER REGARDING DISALLOWANCE OF PAYMENT TO CDSL U/S 40(A)(IA) OF THE ACT IS ALREADY SET-ASIDE BY THE CO ORDINATE BENCH TO THE FILE OF THE LD CIT(A) WHICH IS CURRENTLY PENDING, IN ORDER TO AVOID MULTIPLICITY OF PROCEEDINGS, WE DEEM IT FIT AND PROPER TO REMAND TH E PENALTY MATTER TO THE FILE OF AO WHO SHALL DECIDE THE PENALTY MATTER A FR ESH AFTER CONSIDERING THE OUTCOME OF DECISION OF LD CIT(A) IN THE QUANTUM PRO CEEDINGS AND AFTER PROVIDING AN OPPORTUNITY TO THE APPELLANT. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMENT I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07 /0 4/2016. SD/- SD/- ( R.P. TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER ITA NO. 876/JP/14 THE ITO, WARD 6(1), JAIPUR VS. M/S JSEL SECURITIES LTD. JAIPUR 4 JAIPUR DATED:- 07/ 04 /2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ITO, WARD 6(1), JAIPUR 2. THE RESPONDENT- M/S JSEL SECURITIES LTD. JAIPUR 3. THE CIT(A) II, JAIPUR 4. THE CIT-II, JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO SA NO. 876/JP/14) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR