Income Tax Appellate Tribunal - Mumbai
Nirmal Bang Securities P.Ltd, Mumbai vs Acit 4(2)(1), Mumbai on 22 May, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
"B" BENCH, MUMBAI
BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND
SHRI RAM LAL NEGI, JUDICIAL MEMBER
ITA no.1191/Mum./2018
(Assessment Year : 2014-15)
Nirmal Bang Securities Pvt. Ltd.
38-B, Khatau Building
2nd Floor, Alkesh Dinesh Modi Marg ................ Appellant
Fort, Mumbai 400 023
PAN - AAACN7369L
v/s
Asstt. Commissioner of Income Tax
................ Respondent
Circle-4(2)(1), Mumbai
Assessee by : Shri Anant N. Pai
Revenue by : Shri Aarsi Prasad
Date of Hearing - 13.03.2019 Date of Order - 22.05.2019
ORDER
PER SHAMIM YAHYA, A.M.
This appeal by the assessee is directed against order 02.06.2017 passed by the learned CIT(A)-9, Mumbai, and pertains to the assessment year 2014-15. The grounds of appeal read as under:-
"Addition of Brokerage received of ` 16,82,153.
The Hon'ble Commissioner (Appeals) has erred in confirming the addition of ` 16,82,153, on account of non claim of TDS of ` 1,68,215, deducted on brokerage received which was deposited late by the TDS deductor where as brokerage income of ` 2 Nirmal Bang Securities Pvt. Ltd.
16,82,153, has already been offered for taxation and only the claim of TDS was not taken.
The assessee has not placed reliance on any advance ruling and the Hon'ble CIT(A) has been mistaken with the facts of the case.
Moreover, no TDS credit of ` 1,68,215, on the above brokerage income has been given while calculating the tax on assessed income even though the brokerage income has been added twice to the total income."
2. On this issue, the Assessing Officer noted that in the 26AS statement, there was a tax deduction at source credit of ` 1,68,215. However, the Assessing Officer noted that the same was not reflected in the assessee's return of income. Upon explanation, the assessee explained that the said sum represented income of ` 16,82,153, which has been duly been offered in the return of income, however, the credit for tax deduction at source for the sum of ` 1,68,153, was not taken as the deductor had not deposited the amount to the Government account in time. The assessee also requested that Assessing Officer to give it the credit for the tax deduction at source for the said sum of ` 1,68,215, however, the Assessing Officer proceeded to make the addition of ` 16,82,153.
3. Before the learned CIT(A), the assessee made the necessary submissions. However, the learned CIT(A) referred to the reliance by the assessee upon an Authority for Advance Ruling order and proceeded to sustain the Assessing Officer's addition. Against this order, assessee is in appeal before us.
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Nirmal Bang Securities Pvt. Ltd.
4. We have heard both the counsel and perused the material on record. Learned counsel of the assessee has contended that authorities below have clearly erred in appreciating the submission of the assessee. We note that the assessee has duly submitted that against the said tax deduction at source amount of ` 1,68,215, the assessee has already offered a sum of ` 16,82,153, as income. In these circumstances, in our considered opinion, this issue needs to be remitted to the file of Assessing Officer. The Assessing Officer needs to examine the issue afresh keeping in mind the assessee's claim that the assessee has offered a sum of ` 16,82,153, as income and the assessee now wishes to claim credit for a sum of ` 1,68,215, being the tax deducted at source. Accordingly, the issue stands remitted to the file of assessing officer. Needless to add, the assessee should be given adequate opportunity of being heard. Both the counsel fairly agreed to the above proposition.
5. In the result, assessee's appeal is allowed for statistical purposes.
Order pronounced in the open Court on 22.05.2019 SD/- SD/-
RAM LAL NEGI SHAMIM YAHYA
JUDICIAL MEMBER ACCOUNTANT MEMBER
MUMBAI, DATED: 22.05.2019
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Nirmal Bang Securities Pvt. Ltd.
Copy of the order forwarded to:
(1) The Assessee;
(2) The Revenue;
(3) The CIT(A);
(4) The CIT, Mumbai City concerned;
(5) The DR, ITAT, Mumbai;
(6) Guard file.
True Copy
By Order
Pradeep J. Chowdhury
Sr. Private Secretary
(Sr. Private Secretary)
ITAT, Mumbai