Income Tax Appellate Tribunal - Mumbai
Asst Cit Cir 4(2), Mumbai vs Shcil Services Ltd, Mumbai on 12 May, 2017
आयकर अपीलीय अधिकरण " एच " न्यायपीठ मुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH "H", MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA NO.1796/MUM/2011, (A.Y : 2007-08) ACIT Cir.4(2) Vs. M/s SHCIL Services Ltd.
Room No.642, 6th Floor Ground Floor, P.J.Towers Aayakar Bhavan Dalal Street, Fort M.K.Road Mumbai - 400 023 Mumbai - 400 020 PAN : AAJCS5661H
ITA NO.1221/MUM/2011, (A.Y:2007-08) M/s SHCIL Services Ltd. Vs. ACIT Cir.4(2) Ground Floor, P.J.Towers Room No.642, 6th Floor Dalal Street, Fort Aayakar Bhavan Mumbai - 400 023 M.K.Road PAN : AAJCS5661H Mumbai - 400 020 (अपीलार्थी / Appellant) (प्रत्यर्थी / Respondent) निर्ाा रिती की ओर से /Assessee by : Shri Akram Khan & Shri Raunak Vardhan िाजस्व की ओर से /Revenue by : Shri B.S.Bist सुिवाई की तािीख / Date of Hearing : 8.3.2017 घोषणा की तािीख / Date of Pronouncement : 12.5.2017 आदे श / O R D E R PER C.N.PRASAD (JM) This appeal is recalled for the purpose of disposing of the ground relating to disallowance of transaction charges paid to BSE u/s 40(a)(ia) of the Act.
2 ITA No. 1796/Mum/2011 & CO No.1221/Mum/2011 (A.Y.2007-08)M/s SCHCIL Services Ltd.
2. This Tribunal by order dated 28.8.2014 in ITA No.1796/Mum/2011 decided this issue against the Assessee by following the jurisdictional High Court in the case of CIT Vs. Kotak Securities Ltd [340 ITR 333]. Subsequently, the Hon'ble Supreme Court reversed the decision of the jurisdictional High Court in the case of CIT Vs. Kotak Securities Ltd, wherein, it was held that the view taken by the Hon'ble Bombay High Court that the transaction charges paid to the Bombay Stock Exchange by its members are for technical services rendered is not an appropriate view. It was held that such charges are in the nature of payments made for facilities provided by the Stock Exchange and no TDS on such payments would therefore be deductible u/s 194J of the Act. In view of this decision of the Hon'ble Supreme Court, the appeal of the Revenue was recalled by this Tribunal in MA No.106/Mum/2010 dated 31.2.2017 to dispose off the ground in consonance with the decision of the Hon'ble Supreme Court in the case of CIT Vs. Kotak Services Ltd. Therefore, respectfully following the said decision, we decide this issue in favour of the Assessee and against the Revenue. Assessing Officer is directed to delete the disallowance made u/s 40(a)(ia) in respect of transaction charges paid by the Assessee to Stock Exchange.
3. In the result, appeal of the Revenue on this ground is dismissed.
Order pronounced in the open court on the 12th day of May 2017.
Sd/- Sd/- (RAMIT KOCHAR) (C.N.PRASAD) ले खा सदस्य / न्याधयक सदस्य / ACCOUNTANT MEMBER JUDICIAL MEMBER
मुुंबई / Mumbai; नििाुं क / Dated 12.05.2017 LR, SPS 3 ITA No. 1796/Mum/2011 & CO No.1221/Mum/2011 (A.Y.2007-08) M/s SCHCIL Services Ltd.
आदे श की प्रधिधलधप अग्रे धिि / Copy of the Order forwarded to :
1. अपीलार्थी / The Appellant
2. प्रत्यर्थी / The Respondent.
3. आयकि आयुक्त(अपील) / The CIT(A), Mumbai.
4. आयकि आयुक्त / CIT
5. नवभागीय प्रनतनिनर्, आयकि अपीलीय अनर्किण, मुुं बई / DR, ITAT, Mumbai
6. गार्ा फाईल / Guard file.
सत्यानपत प्रनत //True Copy// आदे शानसार/ BY ORDER, सहायक पुं जीकार (Asstt. Registrar) आयकर अपीलीय अधिकरण,मुुं बई / ITAT, Mum