CIT v. Kotak Securities Ltd.

340 ITR 333High Court2012#613 most cited

What is CIT v. Kotak Securities Ltd. authority for?

A deductor's bonafide belief or reliance on a Tax Residency Certificate (TRC) can influence whether they are deemed an 'assessee in default' under Section 195 for failing to deduct tax at source on payments to non-residents. The decision clarifies the due diligence required when interpreting tax treaties and TRCs for TDS compliance.

161

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Kotak Securities Ltd. · Section 195 · Section 201(1) · Section 201(1A) · Section 40(a)(i) · bonafide belief · Tax Residency Certificate · TRC · withholding tax · TDS on non-residents · tax treaty interpretation · assessee in default

Also reported as

15 Taxmann.com 77245 CTR 3

Sections most often in play

Section 195Section 201(1)Section 201(1A)Section 40(a)(i)Section 194JSection 40(a)(ia)

Issues it is cited on

place of effective managementtax residency certificatesection 195(2)section 194htrcsection 194jwithholding taxbeneficial ownersection 40(a)(i)tax treatypermanent establishmentsection 195

Judgments citing CIT v. Kotak Securities Ltd.

ITO (TDS) (OSD) 1(2), Mumbai vs. Entertainment Network (I) Ltd, Mumbai

In the result, both the appeals filed by the Revenue are dismissed

ITA 5227/MUM/2014[2012-13]Status: DisposedITAT Mumbai11 Jan 2017AY 2012-13

Bench: Shri Mahavir Singh & Shri Ashwani Tanejaassessment Year: 2011-12 & Assessment Year: 2012-13 Ito (Tds)(Osd) Entertainment Network (I) Ltd. 1(2) Trade Garden, Gr. Floor, Kamala बनाम/ R.No.811 K.G. Mill Compound, Senapati Bapat Vs. Mittal Hospital Marg, Lower Parel,(W) Bldg. Charni Rd Mumbai-400013 Mumbai-400002 (Revenue) (Respondent ) P.A. No.Aaace7796G Revenue By Shri Vishwas Mundhe (Dr) Respondent By Shri Mayur Kisnadwala (Ar) सुनवाई क" तार"ख/Date Of Hearing: 15/12/2016 आदेश क" तार"ख /Date Of Order: 11/01/2017

Section 192Section 194CSection 194HSection 194JSection 201Section 201(1)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ,E,मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “E”, MUMBAI Before Shri Mahavir Singh, Judicial Member, and Shri Ashwani Taneja, Accountant Member Assessment Year: 2011-12 & Assessment Year: 2012-13 ITO (TDS)(OSD) Entertainment Network (I) Ltd. 1(2) Trade Garden, Gr. Floor, Kamala बनाम/ R.No.811 K.G. Mill Compound, Senapati Bapat Vs. Mittal Hospital Marg, Lower Parel,(W) Bldg. Charni Rd Mumbai-400013 Mumbai-400002 (Revenue) (Respondent ) P.A. No.AAACE7796G Revenue by Shri Vishwas Mundhe (DR) Respondent by Shri Mayur Kisnadwala (AR) सुनवाई क" तार"ख/Date of Hearing:…

ITO (TDS) (OSD) 1(2), Mumbai vs. Entertainment Network (India) Ltd, Mumbai

In the result, both the appeals filed by the Revenue are dismissed

ITA 1352/MUM/2014[2011-12]Status: DisposedITAT Mumbai11 Jan 2017AY 2011-12

Bench: Shri Mahavir Singh & Shri Ashwani Tanejaassessment Year: 2011-12 & Assessment Year: 2012-13 Ito (Tds)(Osd) Entertainment Network (I) Ltd. 1(2) Trade Garden, Gr. Floor, Kamala बनाम/ R.No.811 K.G. Mill Compound, Senapati Bapat Vs. Mittal Hospital Marg, Lower Parel,(W) Bldg. Charni Rd Mumbai-400013 Mumbai-400002 (Revenue) (Respondent ) P.A. No.Aaace7796G Revenue By Shri Vishwas Mundhe (Dr) Respondent By Shri Mayur Kisnadwala (Ar) सुनवाई क" तार"ख/Date Of Hearing: 15/12/2016 आदेश क" तार"ख /Date Of Order: 11/01/2017

Section 192Section 194CSection 194HSection 194JSection 201Section 201(1)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ,E,मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “E”, MUMBAI Before Shri Mahavir Singh, Judicial Member, and Shri Ashwani Taneja, Accountant Member Assessment Year: 2011-12 & Assessment Year: 2012-13 ITO (TDS)(OSD) Entertainment Network (I) Ltd. 1(2) Trade Garden, Gr. Floor, Kamala बनाम/ R.No.811 K.G. Mill Compound, Senapati Bapat Vs. Mittal Hospital Marg, Lower Parel,(W) Bldg. Charni Rd Mumbai-400013 Mumbai-400002 (Revenue) (Respondent ) P.A. No.AAACE7796G Revenue by Shri Vishwas Mundhe (DR) Respondent by Shri Mayur Kisnadwala (AR) सुनवाई क" तार"ख/Date of Hearing:…

S vs. Commodity Brokers P.Ltd, Mumbai

ITA 7266/MUM/2014[2008-09]Status: DisposedITAT Mumbai25 Nov 2016AY 2008-09

Bench: Shri Mahavir Singh () & Shri Ashwani Taneja ()

Section 194JSection 271CSection 9(1)(vii)

…ound that transaction charges paid by the assessee were in the nature of fee for technical services rendered by Stock Exchange to the assessee, as per section 9(1)(vii) of the Act as held by Hon’ble Bombay High Court in the case of CIT vs Kotak Securities Ltd 15 Taxmann.com 77. Therefore, the assessee should have deducted TDS upon the same and since the assessee did not deduct tax at source on the transaction charges paid without any reasonable cause, the AO held that it was a fit case for levy of penalty, thus, penalty of Rs.1,18,439 was levied u/s 271C. In first appeal, Ld. CIT(A) dismissed the appeal of the as…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…cannot be made, if the assessee held a bonafide belief for being outside the purview of TDS. We draw support for the aforesaid conclusion from the following findings in the decision of Honourable Bombay High Court in the case of CIT v. Kotak Securities LTd.: 340 ITR 333: ―32. Accordingly, we hold that the transaction charges paid by the assessee to the stock exchange constitute ‗fees for technical services‘ covered under s. 194J of the Act and, therefore, the assessee was liable to deduct tax at source while crediting the transaction charges to the account of the stock exchange. However, since both the Revenue a…

M/S. Bharti Airtel Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result appeal of the assessee with respect to ground No

ITA 5816/DEL/2012[2008-09]Status: DisposedITAT Delhi24 Oct 2016AY 2008-09

Bench: Shri I.C.Sudhir & Shri Prashant Maharishibharti Airtel Ltd, Addl Cit, Bharti Crescent, 1, Vs. Range-2, Cr Building, Ip Nelson Mandela Road, Vasant Estate, New Delhi Kunj, New Delhi Pan:Aaacb2894G (Appellant) (Respondent) Bharti Airtel Ltd, Addl Cit, Bharti Crescent, 1, Vs. Range-2, Cr Building, Ip Nelson Mandela Road, Vaxant Estate, New Delhi Kunj, New Delhi Pan:Aaacb2894G (Appellant) (Respondent)

For Appellant: Sh. Ajay Vohra, SrFor Respondent: Sh. NC Swain, CIT DR (OSD)
Section 201Section 254Section 40

…as an assessee in default for not deducting the tax at source and consequently, disallowance under Section 40(a)(ia) of the Act is not warranted. ii. The aforesaid principle has been upheld by the Bombay High Court in the case of CIT vs. Kotak Securities Ltd: 340 ITR 333. In the said case, the assessee company was engaged in the business of share broking, depositories, mobilisation of deposits and marketing of public issues. The assessee had paid to the BSE transaction charges. The question before the Court was whether the said payment of transaction charges constituted payment of fees for technical services' cov…

Saffron Global Markets P.Ltd, Mumbai vs. ITO TDS 3(2), Mumbai

ITA 6843/MUM/2014[2010-11]Status: DisposedITAT Mumbai25 Aug 2016AY 2010-11

Bench: Shri Joginder Singh () & Shri Ashwani Taneja ()

Section 194JSection 201(1)Section 9(1)(vii)

…, NSE). 3. During the course of hearing, it was submitted by the Ld. Counsel that the Ld.CIT(A) decided this issue against the assessee by relying upon the 3 I.T.A. No.6843 /Mum/2014 judgement of Hon’ble Bombay High Court in the case of Kotak Securities Ltd 340 ITR 333 (Bom) wherein it was held that the transaction charges paid to NSE was on account of managerial services rendered by NSE to the assessee and consequently the transaction charges constituted fee for technical services u/s 194J of the Act and, therefore, assessee ought to have deducted tax at source. However, the aforesaid judgement of Hon’ble Bomb…

Ajcon Global Services Ltd, Mumbai vs. ITO 4(1)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 50/MUM/2013[2009-10]Status: DisposedITAT Mumbai01 Aug 2016AY 2009-10

Bench: Shri B R Baskaran & Shri Amit Shukla

Section 143(3)Section 14ASection 194JSection 40

…ल स"व"सेस "ल"मटेड Ajcon Global Services Ltd. ITA 50/Mum/2013 section 194J on such payments. We find that, the Ld. CIT(A) has decided the issue following the decision of Hon’ble Bombay High Court in the case of CIT vs. Kotak Securities Ltd., reported in [2016] 340 ITR 333. Now as admitted by both the parties, the decision of Hon’ble Bombay High Court has been reversed by the Hon’ble Supreme Court in the case of CIT v. M/s Kotak Securities Ltd. in Civil Appeal No.314 of 2016, vide judgment and order dated 29th March, 2016 wherein, after analyzing the entire issue in detail, their Lordships have held that, the payme…

Keshav Securities P.Ltd, Mumbai vs. ITO TDS 2(2), Mumbai

In the result, appeal of the assessee is allowed, as above

ITA 1932/MUM/2015[2010-11]Status: DisposedITAT Mumbai22 Jul 2016AY 2010-11

Bench: Shri G.S.Pannu & Shri Amarjit Singh.

For Appellant: Shri Darshan SandhiFor Respondent: Shri Deepak Ripote
Section 194JSection 201Section 201(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I”, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER & SHRI AMARJIT SINGH, JUDICIAL MEMBER. ITA No. 1932 /MUM/2015 (Assessment Year : 2010-11) Keshav Securities Pvt. Ltd., 701, 7th Floor, Prem Sagar, Plot No.57, Swastic Society, N.S.Road No.3, Vileparle(W), Mumbai 400 056 PAN: AACCK 2279A ... Appellant Vs. The ITO TDS 2(2), Mumbai. .... Respondent Appellant by : Shri Darshan Sandhi Respondent by : Shri Deepak Ripote Date of hearing : 19/07/2016 Date of pronouncement : 22/07/2016 ORDER PER G.S.PANNU,A.M: The captioned appeal filed by the assessee pertaining t…

Action Financial Services India Ltd, Mumbai vs. ITO (TDS)1(1), Mumbai

In the result, appeals of assessee for both the year under consideration are allowed

ITA 7076/MUM/2014[2011-12]Status: DisposedITAT Mumbai08 Jul 2016AY 2011-12
For Appellant: Shri Rahul K. HakaniFor Respondent: Shri Arvind Kumar
Section 115JSection 194JSection 201(1)

…nd BSE Vallan Ledger. However, the assessing officer has taxed TDS on transaction charges @10% (i.e. 194J). 4. By the impugned order the CIT(A) confirmed the action of AO following the decision of Hon’ble Bombay High Court in the case of Kotak Securities Ltd. 340 ITR 333. 5. At the outset, ld. AR placed the order of Hon’ble Supreme Court wherein decision of Hon’ble Bombay High Court in the case of Kotak Securities Ltd. was reversed and it was held that transaction tax are not liable for deduction of tax u/s.115J. 6. We have considered rival contentions and found that the issue is squarely covered by the decision…

Action Financial Services India Ltd, Mumbai vs. ITO (TDS)1(1), Mumbai

In the result, appeals of assessee for both the year under consideration are allowed

ITA 7075/MUM/2014[2010-11]Status: DisposedITAT Mumbai08 Jul 2016AY 2010-11
For Appellant: Shri Rahul K. HakaniFor Respondent: Shri Arvind Kumar
Section 115JSection 194JSection 201(1)

…nd BSE Vallan Ledger. However, the assessing officer has taxed TDS on transaction charges @10% (i.e. 194J). 4. By the impugned order the CIT(A) confirmed the action of AO following the decision of Hon’ble Bombay High Court in the case of Kotak Securities Ltd. 340 ITR 333. 5. At the outset, ld. AR placed the order of Hon’ble Supreme Court wherein decision of Hon’ble Bombay High Court in the case of Kotak Securities Ltd. was reversed and it was held that transaction tax are not liable for deduction of tax u/s.115J. 6. We have considered rival contentions and found that the issue is squarely covered by the decision…

Creative Global Stock Broking P.Ltd, Mumbai vs. DCIT 4(1), Mumbai

Appeal of the assessee is treated as allowed for statistical purposes

ITA 6236/MUM/2013[2006-07]Status: DisposedITAT Mumbai29 Jun 2016AY 2006-07

Bench: Shri Sanjay Garg & Shri Rajesh Kumar

For Appellant: Shri Rajiv Khandelwal, A.R. &For Respondent: Shri C.W. Angolkar, D.R
Section 147Section 14ASection 194JSection 40Section 73

…to the non deduction of TDS on payment of transaction charges paid to the Bombay Stock Exchange. The lower authorities have disallowed the said expenditure while relying upon the decision of the Hon’ble Bombay High Court in the case of “Kotak Securities Ltd.” 340 ITR 333 wherein the Hon’ble Bombay High Court has held that the payment made to stock exchange was for managerial services that constitutes fees for technical services under section 194J of the Act and that TDS is required to be deducted on such payments and that non deduction of TDS on such payments attracted disallowance under section 40(a)(ia) of the…

Fiduciary Shares & Stocks P.Ltd, Mumbai vs. ACIT Cir 4(2), Mumbai

In the result, the assessee’s appeal for A

ITA 321/MUM/2013[2009-10]Status: DisposedITAT Mumbai13 May 2016AY 2009-10

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainfiduciary Shares & Stock P. Ltd. Acit, Circle 4(2) Unit No. T7B, 5Th Floor, Phoenix Àayakar Bhavan, M.K. Road House, Block No. 2, Phoenix Mills Vs. Mumbai 400020 Compound, 462, Senapati Bapat Marg, Mumbai 400013 Pan - Aaacf9759N Appellant Respondent

For Appellant: Shri B.V. JhaveriFor Respondent: Shri Sumit Kumar
Section 143(1)Section 143(3)Section 14ASection 73

…the Hon'ble Apex Court in the case of CIT vs. Kotak Securities Ltd. (in Civil Appeal No. 3141 of 2016 dated 29.03.2016) contending that in this decision the Hon'ble Apex Court has reversed the view of the Hon'ble Bombay High Court in the same case reported in 340 ITR 333 to hold that the transaction charges paid to Stock Exchange by its members are not for ‘technical services’ rendered but are really in the nature of payments made for facilities provided by Stock Exchange. Hence, no TDS on such payments would, therefore, be deductible under section 194J of the Act. 6.3 Per contra, the learned D.R. for Revenue emp…

M/S Bharti Hexacom Ltd., New Delhi vs. ACIT, New Delhi

In the result, assessee’s appeals are allowed and department’s appeal dismissed

ITA 3394/DEL/2012[2008-09]Status: DisposedITAT Delhi21 Apr 2016AY 2008-09

Bench: Shri S.V. Mehrotra: & Shri A.T. Varkey:

For Appellant: Shri Anil Bhalla CA &For Respondent: Shri A.K. Saroha CIT (DR)
Section 115JSection 194HSection 194JSection 234BSection 35ASection 40Section 54

…for the period 1995 to December 2010 (assessment made in AY 2006-07), both revenue and assessee proceeded on the footing that section 194 H was not applicable. He relied on the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333. 21. The third limb of argument was that the provisions of section 40(a)(ia) will apply only to the amount payable at the end of the year. In support of this contention he relied on the decision of ITAT Special Bench in the case of Merilyn Shipping & Transports, Visakhapatnam 16 ITR (Trib.) 1 (Vizag) (SB). He further referred to the decision of…

DCIT 10(1), Mumbai vs. Mahanagar Gas Ltd, Mumbai

In the result, appeal of revenue is partly allowed for statistical purposes

ITA 1945/MUM/2013[2009-10]Status: DisposedITAT Mumbai15 Apr 2016AY 2009-10

Bench: Shri R.C. Sharma, Am & Shri Mahavir Singh, Jm Deputy Commissioner Of Income-Tax- Vs. Mahanagar Gas Ltd. 10(1), Mumbai.455, Aayakar Bhavan, Mgl House, Block No. G-33, 4Th Floor, M. K. Marg, Mumbai-400 Bandra Kurla Complex, Bandra 020. (East), Mumbai-400 051. (Pan:Aabcm4640G (Appellant) (Respondent)

For Appellant: Shri Sanjiv Jain, DRFor Respondent: S/Shri A. V. Sonde & P.P. Jayaraman
Section 143(3)Section 197Section 40

…er one section. Therefore, a payment is liable for tax deduction only under one section.” 5 Mahanagar Gas Ltd. Asst. Year 2009-10 6. Now we go through the case law cited by the Ld. counsel for the assessee in the case of CIT Vs. Kotak Securities Ltd. (2012) 340 ITR 333 (Bom), wherein it has been held as under: “31. The object of introducing section 40(a)(ia), as explained in the Central Board of Direct Taxes Circular No. 5, dated July 15, 2005—See [2005] 276 ITR (St.) 151 ), is to augment compliance with the TDS provisions in the case of residents and curb bogus payments. Moreover, though section 194J was inse…

First Global Stockbroking P. Ltd, Mumbai vs. ITO (TDS) 1(5), Mumbai

The appeal of the assessee is dismissed

ITA 5256/MUM/2014[2010-11]Status: DisposedITAT Mumbai11 Mar 2016AY 2010-11

Bench: Shri Joginder Singh & Shri Jason P. Boazassessment Year: 2010-11 First Global Stockbroking Ito(Tds)-1(5), Pvt. Ltd. R. No.808, बनाम/ 2, Crescent Chambers, Smt. K.G. Mittal Aayurvedic Vs. 4Th Floor, Tamarind Lane, Hospital Bldg, Charni Road, Fort, Mumbai-400001 Mumbai-400002 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaacf0661K

Section 194JSection 201(1)

…s and transaction charges were considered and held against the Revenue following the decision in the case of Deputy CIT v. Angel Broking Ltd. [2010] 3 ITR (Trib) 294 (Mum). The same principles were reiterated in the case of CIT v. Kotak Securities Ltd. [2012] 340 ITR 333 (Bom); [2011] 203 Taxman 86 (Bom). To the extent of VSAT, lease line charges the Revenue did not even contest. Even though the Hon’ble Court held that the transaction charges paid to the stock exchange constitute fees for technical services on bona fide belief it was considered that the disallowance cannot be made in that year as the Revenue did…

Atos Information Technology Hk Ltd, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

In the result, the appeal as filed by the assessee is allowed for statistical purposes

ITA 1464/MUM/2015[2011-12]Status: DisposedITAT Mumbai04 Mar 2016AY 2011-12

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 1464/Mum/2015 ("नधा"रण वष" / Assessment Year : 2011-12) Atos Information Technology Deputy Commissioner Of बनाम/ Hk Limited, C/O Atos India Income Tax-(International V. Pvt. Ltd.,Plant No. 5, Taxation) – 1(1)(2), Godrej & Boyce Mfg. Co. Scindia House, Ltd., Pirojshanagar, Lbs Mumbai. Marg, Vikhroli (W), Mumbai 400 097. "थायी लेखा सं./Pan : Aakcs8720L (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri Jabir S. Chouhan (CIT-
Section 115ASection 143(3)Section 144C(13)Section 144C(5)Section 199Section 234Section 234BSection 9(1)(vi)

…- ITA 1464/Mum/2015 7 1. (1996)222 ITR 354(Ker. HC) in the case of Cochin Refineries Limited v. CIT 2. (2009)309 ITR 244(Uttarakhand HC) in the case of CIT v. ONGC Limited 3. (2007)289 ITR 355(AAR) in Re. Cargo Community Network Private Limited & 4. (2011) 340 ITR 333(Bom. HC) in Kotak Securities Limited The Ld. DR submitted that the provisions of the Act is applicable as there is no DTAA agreement with Hong Kong. The Explanation 5 is added to section 9(1)((vi) of the Act with retrospective effect and hence the A.O. has rightly held that the income earned by the assessee company is royalty and technical servi…

Trusted Shares & Investments Ltd, Mumbai vs. ITO 4(2)(2), Mumbai

In the result, the assessee’s appeal is partly allowed

ITA 648/MUM/2015[2010-11]Status: DisposedITAT Mumbai27 Nov 2015AY 2010-11

Bench: Shri Sanjay Arora, Am आयकर अपील सं./I.T.A. No. 648/Mum/2015 ("नधा"रण वष" / Assessment Year: 2010-11) Trusted Shares & Investments Ltd. Ito-4(2)(2), बनाम/ 112, Churchgate Chambers, Aayakar Bhavan, 5, New Marine Lines, Mumbai-400 020 Vs. Churchgate, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaact 4465 H (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Bhupendra Shah ""यथ" क" ओर से/Respondent By : Shri B. S. Bist

For Appellant: Shri Bhupendra ShahFor Respondent: Shri B. S. Bist
Section 143(3)Section 194Section 194JSection 40

…a company in the business of share broking, to Bombay Stock Exchange (BSE) (Rs.4,42,512/-). The same stands effected u/s. 40(a)(ia) due to the non-deduction of tax at source thereon, relying on the decision in the case of CIT vs. Kotak Securities Ltd. [2012] 340 ITR 333 (Bom), which holds the transaction charges paid to stock exchanges as exigible to tax deduction at source u/s.194-J, so that non-deduction thereof would attract section 40(a)(ia). The disallowance would stand, thus, deferred to the year of deduction and deposit of the tax at source to the credit of the Central Government. The assessee, on the oth…

ACIT Cir 4(2), Mumbai vs. Vibrant Securities P.Ltd, Mumbai

In the result the appeal of the Revenue is dismissed

ITA 1427/MUM/2014[2007-08]Status: DisposedITAT Mumbai27 Nov 2015AY 2007-08

Bench: Shri D Karunakara Rao, Am & Shri Sanjay Garg, Jm "नधा"रण वष" / Assessment Year - 2007-08 The Acit Cir. 4(2), Vibrant Securities P. Ltd., Mumbai 103- A, Podar Chambers, Vs S A Brelvi Road, Fort, Mumbai- 400 001. Pan Aabcv8287E (अपीलाथ" /Appellant) (""यथ"/Respondent)

For Appellant: Ms Amrita SinghFor Respondent: None
Section 143(3)Section 271(1)(c)Section 40

…deleted the penalty observing that the issue relating to the allowability of the expenses in relation to transaction charges, VSAT charges and lease line charges has been a debatable issue. The Hon’ble Bombay High Court in the case of Kotak Securities ltd. 340 ITR 333 has held that TDS is not deductible in case of lease line charges and VSAT charges; however, TDS is deductible in relation to transaction charges. The learned CIT(A) has observed that the assessee was under bona fide belief that no TDS was deductible in relation to transaction charges also. He further observed that the issue was a debatable iss…

Four Dimensions Securities (I) Ltd, Mumbai vs. Addl CIT RG 4(1), Mumbai

Appeals are disposed off in terms indicated hereinabove

ITA 1011/MUM/2010[2006-07]Status: DisposedITAT Mumbai28 Oct 2015AY 2006-07

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: 2005-06 M/S Four Dimensions Addl. Commissioner Of Securities (India) Ltd. Income Tax, Range-4(1), बनाम/ 29, Bank Street, 1St Floor, 6Th Floor, Aayakar Bhavan, Vs. Fort, Mumbai Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaacf1734F Assessment Year: 2005-06 Addl. Commissioner Of M/S Four Dimensions Income Tax, Range-4(1), Securities (India) Ltd. बनाम/ 6Th Floor,Aayakar Bhavan, 29, Bank Street, 1St Floor, Vs. Mumbai-400020 Fort, Mumbai (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No.Aaacf1734F Assessment Year: 2006-07 M/S Four Dimensions Addl. Commissioner Of Securities (India) Ltd. Income Tax, Range-4(1), बनाम/ 29, Bank Street, 1St Floor, 6Th Floor, Aayakar Bhavan, Vs. Fort, Mumbai Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaacf1734F

Section 143(1)Section 143(3)Section 94(7)

…cision from Hon’ble High Court, we decide the issue of leaseline charges in favour of the assessee. 6.2. So far as transaction charges are concerned, the issue has been settled against the assessee by Hon’ble High Court in CIT vs Kotak Securities Ltd. (2012) 340 ITR 333 (Bom.) order dated 21/10/2011. Our attention was invited to order of the Tribunal in ITO vs M/s Grishma Securities Pvt. Ltd. (ITA No.6162/Mum/2010) order dated 30/11/2011, wherein, in view of the guidelines laid down by Hon’ble High Court, the Assessing Officer was directed to verify the stand of the assessee from the relevant record and decide a…

DCIT -4(1), Mumbai vs. Four Dimension Securities (I) Ltd, Mumbai

Appeals are disposed off in terms indicated hereinabove

ITA 790/MUM/2009[2005-2006]Status: DisposedITAT Mumbai28 Oct 2015AY 2005-2006

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: 2005-06 M/S Four Dimensions Addl. Commissioner Of Securities (India) Ltd. Income Tax, Range-4(1), बनाम/ 29, Bank Street, 1St Floor, 6Th Floor, Aayakar Bhavan, Vs. Fort, Mumbai Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaacf1734F Assessment Year: 2005-06 Addl. Commissioner Of M/S Four Dimensions Income Tax, Range-4(1), Securities (India) Ltd. बनाम/ 6Th Floor,Aayakar Bhavan, 29, Bank Street, 1St Floor, Vs. Mumbai-400020 Fort, Mumbai (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No.Aaacf1734F Assessment Year: 2006-07 M/S Four Dimensions Addl. Commissioner Of Securities (India) Ltd. Income Tax, Range-4(1), बनाम/ 29, Bank Street, 1St Floor, 6Th Floor, Aayakar Bhavan, Vs. Fort, Mumbai Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaacf1734F

Section 143(1)Section 143(3)Section 94(7)

…cision from Hon’ble High Court, we decide the issue of leaseline charges in favour of the assessee. 6.2. So far as transaction charges are concerned, the issue has been settled against the assessee by Hon’ble High Court in CIT vs Kotak Securities Ltd. (2012) 340 ITR 333 (Bom.) order dated 21/10/2011. Our attention was invited to order of the Tribunal in ITO vs M/s Grishma Securities Pvt. Ltd. (ITA No.6162/Mum/2010) order dated 30/11/2011, wherein, in view of the guidelines laid down by Hon’ble High Court, the Assessing Officer was directed to verify the stand of the assessee from the relevant record and decide a…