DCIT CC 46, MUMBAI v. ANGEL COMMODITIES BROKING P.L.TD, MUMBAI

ITA 7026/MUM/2011 | 2008-2009
Pronouncement Date: 10-07-2013 | Result: Dismissed

Appeal Details

RSA Number 702619914 RSA 2011
Assessee PAN AAACK3472D
Bench Mumbai
Appeal Number ITA 7026/MUM/2011
Duration Of Justice 1 year(s) 8 month(s) 23 day(s)
Appellant DCIT CC 46, MUMBAI
Respondent ANGEL COMMODITIES BROKING P.L.TD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 10-07-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 10-07-2013
Date Of Final Hearing 04-07-2013
Next Hearing Date 04-07-2013
Assessment Year 2008-2009
Appeal Filed On 17-10-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A MUMBAI BEFORE SHRI B. RAMAKOTAIAH ACCOUNTANT MEMBER AND SHRI VIVEK VARMA JUDICIAL MEMBER ITA NO. 7026/MUM/2011 ASSESSMENT YEAR : 2008-09 DY. CIT CC 46 ROOM NO.659 6 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI-400 020. VS. M/S. ANGEL COMMODITIES BROKING P. LTD. GROUND FLOOR AKRUTI TRADE CENTRE ROAD NO.7 MIDC ANDHERI (E) MUMBAI-400 093. PAN NO. AAACK 3472 D (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI D.V. LAKHANI REVENUE BY : SHRI SURINDER JIT SINGH DATE OF HEARING : 04/07/2013 DATE OF PRONOUNCEMENT : 10 /07/2013 O R D E R PER B. RAMAKOTAIAH AM: THIS IS A REVENUE APPEAL AGAINST THE ORDER OF CIT(A )-38 MUMBAI DATED 1.7.2011. WE HAVE HEARD THE LD. DR AND THE LD . COUNSEL. 2. GROUND NO.1 : THE REVENUE HAS RAISED THE FOLLOWI NG GROUND 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A) ERRED IN HOLDING THAT DEDUCTION U/S. 20 70 684/- ON ACCOUNT OF BAD DEBTS U/S. 3691)(VIII) R.W.S. 36(2) OF THE I.T. ACT 1961 WAS ALLOWABLE TO THE ASSESSEE IN RESPECT OF THE AMO UNTS NOT RECOVERED WITH REGARD TO SHARE TRANSACTIONS EFFECTE D ON BEHALF OF ITS CLIENT WITHOUT APPRECIATING THAT THE ABOVE DEBTS WE RE NOT IN NATURE OF TRADING DEBTS. ITA NO.7026/M/11 A.Y.08-09 M/S. ANGEL COMMODITIES BROKING P. LTD. 2 2.1 THE ISSUE IN THIS GROUND IS WITH REFERENCE TO D ISALLOWANCE OF BAD DEBTS AMOUNTING TO RS.20 70 684/- BY THE AO ON THE REASON THAT THE ASSESSEE IS EARNING ONLY BROKERAGE INCOME AND PRINC IPAL AMOUNT OF CLAINTS CAN NOT BE ALLOWED AS BAD DEBTS. FOLLOWING THE DECISION OF ITAT SPECIAL BENCH IN THE CASE OF SHREYAS MORKHIA (42 DT R 320) THE LD. CIT(A) ALLOWED THE AMOUNT. THE REVENUE IS AGGRIEVED. 2.2 THIS ISSUE IS NOW CRYSTALLIZED BY THE DECISION OF HON'BLE BOMBAY HIGH COURT IN THE ASSESSEES OWN CASE IN ASSESSMENT YEAR 2006-07 IN ITA NO.2231 OF 2011 WHERE THE HON'BLE HIGH COURT UPHEL D THE ORDER OF THE ITAT ON THE ISSUE FOLLOWING THE DECISION OF THE HON 'BLE HIGH COURT IN THE CASE OF CIT VS. SHREYAS S. MORAKHIA (342 ITR 285) . THEREFORE WE SEE NO REASON TO INTERFERE WITH THE ORDER OF CIT(A). ACCO RDINGLY THE GROUND IS REJECTED. 3. GROUND NO.2 IS AS UNDER :- 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS ..10 08 586/- BY HOLDING THAT VSAT AND LEASE LINE CHARGES CAN NOT BE CONSIDERED AS RENDERING OF TECHNICAL SERVICES AND HENCE PROVISIO NS OF SECTION 40(A)(IA) WERE NOT ATTRACTED. 3.1 THE ISSUE IS WITH REFERENCE TO DELETION OF THE ADDITION OF RS.18 08 586/- BY HOLDING THAT V-SAT AND LEASE LINE CHARGES CAN NOT BE CONSIDERED AS RENDERING OF TECHNICAL SERVICES HEN CE PROVISIONS OF SECTION 40(A)(IA) ARE NOT APPLICABLE. THE AO DISALL OWED THE ABOVE AMOUNT INVOKING SECTION 40(A)(IA) ON THE GROUND THAT THE A SSESSEE FAILED TO COMPLY WITH THE APPLICABLE TDS PROVISIONS. THE LD. CIT(A) FOLLOWING THE DECISION OF CO-ORDINATE BENCHES IN THE CASE OF KOTAK MAHINDRA SECURITIES (25 SOT 44) AND ANGEL BROKING (35 SOT 457) ALLOWED THE CLAIM OF THE ASSESSEE . THIS ISSUE IS ALSO COVERED BY THE DECISI ON OF THE HON'BLE ITA NO.7026/M/11 A.Y.08-09 M/S. ANGEL COMMODITIES BROKING P. LTD. 3 BOMBAY HIGH COURT IN ASSESSEES OWN CASE FOR THE AS SESSMENT YEAR 2006-07 WHEREIN THE HON'BLE HIGH COURT UPHELD THE O RDERS OF ITAT FOLLOWING ITS OWN DECISION IN THE CASE OF CIT VS. ANGEL CAPITAL AND DEBIT MARKET LTD. IN INCOME TAX APPEAL(L) NO.475 OF 2011 DATED 28 TH JULY 2011. SINCE CITS ORDER IS IN LINE WITH THE PRINCIPLE LAI D DOWN BY THE HON'BLE HIGH COURT IN THIS MATTER THE SAME IS UPHELD. THE REVENUE GROUND IS DISMISSED. 4. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH JULY 2013. SD/- SD/- (VIVEK VARMA ) JUDICIAL MEMBER (B. RAMAKOTAIAH ) ACCOUNTANT MEMBER MUMBAI DATED: 10 TH JULY 2013. JV. COPY TO: THE APPELLANT THE RESPONDENT THE CIT CONCERNED MUMBAI THE CIT(A) CONCERNED MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR ITAT MUMBAI.