SRI MAHALAKSHMI SHARES PVT LTD.,CHENNAI vs. ACIT, CHENNAI

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ITA 527/CHNY/2015Status: DisposedITAT Chennai16 April 2015AY 2011-123 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal followed its own previous order for an earlier assessment year where a similar issue was decided in favor of the assessee. The Tribunal found no reason to interfere with the CIT(A)'s finding that Section 194H was not applicable.

What were the facts?

The assessee's appeal concerns the disallowance of commission payments made to sub-brokers. This disallowance was made under Section 40(a)(ia) read with Section 194H of the Income Tax Act.

What were the issues?

Whether commission payments made to sub-brokers are disallowable under Section 40(a)(ia) for non-deduction of TDS under Section 194H.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 194H

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ D” BENCH, CHENNAI

Before: SHRI CHANDRA POOJARI & SHRI CHALLA NAGENDRA PRASAD

For Respondent: Shri. N. Madhavan, IRS, JCIT
Pronounced: 16.04.2015

आदेश / O R D E R

PER CHANDRA POOJARI, ACCOUNTANT MEMBER This appeal filed by assessee is directed against the order of the Commissioner of Income Tax (Appeals)-15, Chennai, dated 23.12.2014.

I.T.A.No.527/Mds/2015. :- 2 -:

2.

The only grievance of the assessee in this appeal is with regard to disallowance of commission payments made to sub brokers u/s. 40a(ia) and read along with section 194H.

3.

After hearing both the parties, we are of the opinion that a similar issue came up for consideration before this Tribunal in assessee’s own case for the assessment year 2009-2010 in and C.O.No.47/Mds/2013. Vide order dated 22.08.2013, the Tribunal has decided the issue in favour of the assessee by observing as under:-

1.

‘’8. We have heard both sides, perused the materials on record and have gone through the orders of authorities below. In this case, the ld. CIT(Appeals) has given a categorical findings that the provisions of section 194H are not applicable to assessee’s case. The ld. CIT(Appeals) has given a similar finding for the assessment year 2008-09 also. The Department has not preferred any appeal against the order of the ld. CIT(Appeals) for the assessment year 2008-09 and the ld. DR has fairly submitted that the Department had accepted the order of the ld. CIT(Appeals). In view of the above facts and circumstances of the case, we find no reason to interfere with the order passed by the ld. CIT(Appeals) and accordingly, the appeal filed by the Revenue is dismissed”.

I.T.A.No.527/Mds/2015. :- 3 -:

4.

Respectfully, following the above order of the Tribunal, we are inclined to decide the issue in favour of the assessee.

5.

In result, the appeal of the assessee in is allowed.

Order pronounced in the open court at the time of hearing on Thursday, the 16th day of April, 2015 at Chennai.

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