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

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.

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:-

‘’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”.

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

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