DCIT, CIR-1, DURGAPUR, Durgapur V. Rajesh Falor, Durgapur

ITA 997/KOL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1734 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 10-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: IN HIS

Judgement Text

ITA NO. 997/KOL/2015 RAJESH FALOR 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B B ENCH, KOLKATA BEFORE : SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBE R I.T.A. NO. 997/KOL/2015 A.Y : 2011-12 DCIT, CIRCLE-1, DURGAPUR AAYAKAR BHAWAN, CITY CENTRE, DURGAPUR-713216 . APPELLANT -VS- RAJESH FALOR A-36, ARMSTRONG AVENUE, SECTOR-2A, BIDHANNAGAR, DURGAPUR-713212 PAN: AACPF 9864 D .RESPONDENT APPEARANCES BY: FOR APPELLANT REVENUE SHRI: SAURABH KUMAR, ADDL. C IT(DR) FOR RESPONDENT ASSESSEE : SHRI ARVIND AGARWAL, ADV OCATE DATE OF HEARING : 01-11- 2017 DATE OF PRONOUNCEMENT : 19-01-2018 SHRI. S.S.VISWANETHRA RAVI, JM: 1. THIS APPEAL BY THE REVENUE IN HIS ORDER DATED 2 6.05.2015 PASSED BY THE CIT(A)-DURGAPUR FOR ASSESSMENT YEAR 2011-12. ITA NO. 997/KOL/2015 RAJESH FALOR 2 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE CIT(A) IS JUSTIFIED IN DELETING THE ADDITION MADE BY THE A O IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LD. DR RELIED ON THE ORDER OF AO. THE LD. AR SUBMITS THAT THE ASSESSEE IS AN INDIVIDUAL AND IS A REGISTERED SUB-B ROKER AND ENGAGED IN ASSISTING HIS MAIN BROKER SHRI BAHUBALI INTERNATION AL LTD. IN SECURITY TRANSACTION. THE ISSUE ON HAND IS WITH REGARD TO PA YMENT MADE TO REMISSIERS FOR SERVICES RENDERED IN INTRODUCING CLIENTS TO THE BROKER FOR DEALING IN SECURITIES, OUT OF COMMISSION RECEIVED FROM MAIN BR OKER AS SUB-BROKER AND WHETHER THE SAID PAYMENT ATTRACT DEDUCTION OF TAX A T SOURCE U/S 194H OF THE ACT OR NOT. 4. THE LD. AR SUBMITS THAT THE ISSUE IN HAND IS COV ERED BY THE ORDER DATED 14.11.2014 OF THIS TRIBUNAL IN ASSESSEES OWN CASE IN I.T.A NO. 1818/KOL/2012 AND REFERRED TO PARA NO-5 OF THE SAID ORDER WHICH IS AT PAGE NO. 29 OF THE PAPER BOOK AND ARGUED THE CIT(A) RIGH TLY DELETED THE ADDITION MADE BY THE AO BY PLACING RELIANCE ON THE ORDER OF TRIBUNAL. 5. HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MAT ERIAL AVAILABLE ON RECORD. WE FIND THAT THE AO MADE THE DISALLOWANCE O F PAYMENT MADE TO THE REMISSIERS ON ACCOUNT ON NON-DEDUCTION OF TDS U/S 1 94H OF THE ACT. THIS TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2009-10 TO DECIDED THE SIMILAR ISSUE IN FAVOUR OF ASSESSEE IN TERMS OF EXP LANATION-1 TO SECTION 194 OF THE ACT. THE RELEVANT PORTION OF WHICH IS REPROD UCED HEREIN BELOW: 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ADMIT TEDLY, THERE IS NO DISPUTE THAT THE AMOUNT PAID WAS A COMMISSION TO THE REMISER AND THE TRANSACTION WAS IN RESPECT OF PURCHASE AND SALE OF SECURITIES IN THE STOCK EXCHAN GE. A PERUSAL OF THE ORDER OF THE LD. CIT(A) CLEARLY SHOWS THAT HE HAS ACCEPTED THE FACT THAT THE COMMISSION HAS BEEN PAID ON ITA NO. 997/KOL/2015 RAJESH FALOR 3 BEHALF OF SHREE BAHUBALI INTERNATIONAL LTD., THE PR INCIPAL AND THE BROKER. A PERUSAL OF THE EXPLANATION (I) TO SECTION 194 DOES NOT IN ANY WAY MAKE ANY DISTINCTION BETWEEN BROKERS AND SUB-BROKERS. IT ONLY SAYS THAT THE PROVISION OF SECTION 194H WOULD NOT APPLY IN RESPECT OF COMMISSION IN RESPECT OF PURCHASE AND SALE OF SE CURITIES. IN THESE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE DECISION OF THIS CO-ORDI NATE BENCH OF THIS TRIBUNAL, THE FINDINGS OF THE AO AND THE LD. CIT(A) STAND REVERSED AND THE AD DITION STANDS DELETED. THEREFORE, THIS GROUND OF THE ASSESSEE STANDS ALLOWED. NO OTHER GRO UNDS HAVE BEEN SPECIFICALLY ARGUED. 6. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY INFIRM ITY IN THE ORDER OF CIT(A). ACCORDINGLY, GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19-01-2018. SD/- SD/- J.SUDHAKAR REDDY S.S. VI SWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 19-01-2018 SB,SR. PS COPIES TO : (1) APPELLANT/DEPARTMENT: DCIT, CIRCLE-1, DURGAPUR (2) RESPONDENT/ASSESSEE: RAJESH FALOR (3)COMMISSIONER OF INCOME-TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER SR.PS/H.O.O ITAT, KOLKATA