DCIT CIR 4(3), MUMBAI v. K.G. VORA SECURITES P. LTD, MUMBAI

ITA 6346/MUM/2010 | 2006-2007
Pronouncement Date: 29-03-2012 | Result: Dismissed

Appeal Details

RSA Number 634619914 RSA 2010
Assessee PAN AABCK1732D
Bench Mumbai
Appeal Number ITA 6346/MUM/2010
Duration Of Justice 1 year(s) 7 month(s) 3 day(s)
Appellant DCIT CIR 4(3), MUMBAI
Respondent K.G. VORA SECURITES P. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-03-2012
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 29-03-2012
Date Of Final Hearing 22-03-2012
Next Hearing Date 22-03-2012
Assessment Year 2006-2007
Appeal Filed On 26-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A MUMBAI BEFORE SHRI DINESH KUMAR AGARWAL (JM) AND SHRI N.K .BILLAIYA (AM) ITA NO.6346/MUM/2010 (ASSESSMENT YEAR: 2006-07) DY.COMMISSIONER OF INCOME TAX 4(3) ROOM NO.649 6 TH FLOOR AAYAKAR BHAVAN M K ROAD MUMBAI-400020. M/S K.G.VORA SECURITIES P.LTD. 40 KHATAU BUILDING 8/10 ALKESH DINESH MODY MARG FORT MUMBAI-400023 PAN: AABCK1732D APPELLANT V/S RESPONDENT DATE OF HEARING : 22.3.2012 DATE OF PRONOUNCEMENT : 29.3.2012 APPELLANT BY : SHRI N.K.MEHTA RESPONDENT BY : SHRI MANDAR VAIDYA O R D E R PER DINESH KUMAR AGARWAL (JM) THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AG AINST THE ORDER DATED 11.6.2010 PASSED BY THE LD. CIT(A ) FOR THE ASSESSMENT YEAR 2006-07. 2. THE GROUNDS TAKEN BY THE REVENUE READ AS UNDER : 1. (I) ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS.6 18 952/- MADE U/S.40(A)(IA) IN RESPECT OF VSAT LEASELINE AND TRANSACTIONAL CHARGE S PAID TO STOCK EXCHANGE WITHOUT APPRECIATING THE FACTS T HAT ITA NO.6346/MUM/2010 (ASSESSMENT YEAR: 2006-07) 2 THESE WERE COMPOSITE CHARGES FOR PROFESSIONAL AND TECHNICAL SERVICES RENDERED BY THE STOCK EXCHANGE T O ITS MEMBERS AND THE ASSESSEE HAS FAILED TO DEDUCT TDS THEREON. (II). ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD.CIT(A) ERRED IN IGNORING THE FAC T THAT THESE SERVICES ARE ESSENTIAL IN NATURE AS THEY CAN ONLY BE AVAILED BY MEMBERS OF STOCK EXCHANGE. (III) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN IGNORING THE FAC TS THAT USE OF TECHNOLOGY AND ALGORITHMIC BASED PROGRAMS HA VE CONVERTED AN ERSTWHILE PHYSICAL MARKET INTO A DIGIT ALLY OPERATED MARKET. (IV) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW THE LD. CIT(A) ERRED IN IGNORING THE FA CT THAT THE SERVICES RENDERED BY THE BROKERS ARE NOT STANDA RD SERVICES BUT SERVICES THAT HAS BEEN DEVELOPED TO CA TER TO THE NEEDS OF THE BROKER COMMUNITY TO FACILITATE TRA DING. (V) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A) HAS OVERLOOKED THE FACT THAT THE BROKERS HAVE IN SUBSEQUENT YEARS THEMSELVES STA RTED DEDUCTING THE TDS ON SUCH PAYMENTS AND THAT THERE I S NO REASON TO GIVE A DIFFERENT TREATMENT IN THIS YEAR. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE IMPUGNED ORDER OF THE LD. CIT(A) IS CONTRARY TO LA W TO BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE REST ORED. 3. AT THE TIME OF HEARING IT WAS OBSERVED THAT THE TAX EFFECT ON THE DISPUTED AMOUNT OF RS.6 18 952/- IN THE APPEAL FILED BY THE REVENUE IS LESS THAN THE MONETARY LI MIT OF RS.3 00 000/- FIXED BY THE CBDT. THE LEARNED DEPART MENTAL REPRESENTATIVE DID NOT DISPUTE ON THE SAID FACTUAL MATRIX OF THE CASE. ITA NO.6346/MUM/2010 (ASSESSMENT YEAR: 2006-07) 3 4. THAT BEING SO AND IN VIEW OF THE RECENT CBDT INS TRUCTION NO. 3 OF 2011 DATED 9 TH FEBRUARY 2011 REPORTED IN (2011) 332 ITR 1 (STATUTES) AND THE RATIO OF THE DECISION OF T HE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. MAD HUKAR K. INAMDAR (HUF) (2009) 318 ITR 148(BOM) WHEREIN IT H AS BEEN HELD THAT THE REVISED MONETARY LIMIT IN THE CIRCULA R DATED MAY 15 2008 WOULD BE APPLICABLE FOR ALL PENDING APPEAL S AND ALSO THE CONSISTENT VIEW OF THE CO-ORDINATE BENCHES OF THE TRIBUNAL WE ARE OF THE VIEW THAT THE DEPARTMENT SHOULD NOT H AVE FILED THE APPEAL AND ACCORDINGLY THE APPEAL FILED BY THE REVENUE IS DISMISSED. 5. IN THE RESULT THE REVENUES APPEAL STANDS DISMI SSED AS NOT MAINTAINABLE. ORDER PRONOUNCED IN THE OPEN COURT ON 29TH MAR. 2012. SD SD (N.K.BILLAIYA) ( DINESH KUMAR AGARWAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI 29TH MARCH 2012 SRL: ITA NO.6346/MUM/2010 (ASSESSMENT YEAR: 2006-07) 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT CONCERNED 4. CIT(A) CONCERNED 5. DR CONCERNED BENCH 6. GUARD FILE. BY ORDER TRUE COPY ASSTT. REGISTRAR ITAT MUMBAI