VIBRANT SECURITIES P.LTD, V. ASST CIT CIR 4(2),

MA 525/MUM/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 9464 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2007-2008
• Appeal Filed On: 10-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F, MUMBAI BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER MA NO. 525/MUM/2012 ARISING OUT OF ITA NO. 6465/MUM/2010, A.Y. 2007-08 VIBRANT SECURITIES PVT LTD., 103-A, PODAR CHAMBER, S.A. BRELVI ROAD, FORT, MUMBAI -400 001 PAN: AABCV 8287 E VS. ASST. COMMISSIONER OF INCOME-TAX CIRCLE 4(2), MUMBAI (APPELLANT) (RESPONDENT) APPLICANT BY : SHRI DHARMESH SHAH RESPONDENT BY : SHRI MANOJ KUMAR DATE OF HEARING: 02-11-2012 DATE OF PRONOUNCEMENT: 21-11-2012 O R D E R PER VIVEK VARMA, JM: MISCELLANEOUS APPLICATION HAS BEEN FILED ON THE ISSUE OF DISALLOWANCE OF VSAT CHARGES, LEASED LINE CHARGES AND TRANS ACTION CHARGES, RELYING ON THE DECISION OF HONBLE BOMBAY HIGH CO URT IN THE CASE OF CIT VS. KOTAK SECURITIES LTD, REPORTED IN 340 ITR 333. 2. IT HAS BEEN POINTED OUT IN THE INSTANT MISCELLANEOUS A PPLICATION THAT THE HONBLE BOMBAY HIGH COURT WAS SEIZED WITH ONLY TRANSACTION CHARGES BEING FTS. ACCORDING TO THE ASSESSEE IN THE MIS CELLANEOUS APPLICATION, LEASED LINE CHARGES & VSAT WERE NOT INCLUDED AS FTS IN THE CASE OF KOTAK SECURITIES LTD. BEFORE THE HONBLE BOMB AY HIGH COURT. 3. THE AR POINTED OUT THAT DURING THE COURSE OF HEARING GIST OF PROPOSITIONS WAS PLACED, WHEREIN IT WAS POINTED OUT THAT L EASED LINE CHARGES AND VSAT CHARGES NOT HAVING ANY ELEMENT OF INCO ME, DO NOT VIBRANT SECURITIES PVT LTD.. MA 525/M/2012 2 FALL WITHIN THE PARAMETERS OF FTS AND WAS DIRECTLY COVERED BY THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT V S. ANGEL CAPITAL & DEBT MARKET LTD. (ITXAL NO. 475 OF 2011, DATED 28.07.2011) 4. THE ASSESSEE, THEREFORE PRAYED TO RECTIFY THE ORDE R IN THE LIGHT OF THE DECISIONS OF HONBLE BOMBAY HIGH COURT. 5. THE DR RELIED ON THE ORDER PASSED AND SUBMITTED THA T THERE WAS NO INFIRMITY. 6. WE HAVE HEARD THE ARGUMENTS AND HAVE PERUSED THE SUBMISSIONS MADE IN THE MISCELLANEOUS APPLICATION AND THE A R. ON CONSIDERATION OF THE SAME, WE FIND THAT THE ORDER NEEDS T O BE RECTIFIED SO FAR AS THE THREE HEADS ARE CONCERNED. WE, THEREFORE , RECTIFY PARAS 5 & 6 OF THE ORDER DATED 29.06.2012 AND RESTORE THE THRE E HEADS, I.E. TRANSACTION CHARGES, VSAT CHARGES AND LEASED LINE CHARGE S TO THE FILE OF THE AO, WHO SHALL ADJUDICATE ON THE ALLOWABILITY OF THESE EXPENSES IN ACCORDANCE WITH LAW AND AS PER THE DECISIONS OF THE HON BLE BOMBAY HIGH COURT IN THE CASES OF KOTAK SECURITIES LTD. (SUPRA) AN D ANGEL CAPITAL & DEBT MARKET LTD. (SUPRA). 7. THE MA IS THUS, DISPOSED OFF. 8. IN THE RESULT, MA STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 21/11/2012. SD/- (B. RAMAKOTAIAH) ACCOUTANT MEMBER SD/- (VIVEK VARMA) JUDICIAL MEMBER MUMBAI, DATE: 21/11/2012 VIBRANT SECURITIES PVT LTD.. MA 525/M/2012 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)-8, MUMBAI. 4) THE CIT 4, MUMBAI, 5) THE D.R. F BENCH, MUMBAI. 6) COPY TO GUARD FILE. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN