Fiduiciary Shares and Stock Pvt. Ltd. v. AIT

159 ITD 554Income Tax Appellate Tribunal2016#10218 most cited

What is Fiduiciary Shares and Stock Pvt. Ltd. v. AIT authority for?

Shares held as stock-in-trade should be excluded when calculating disallowances under Section 14A, as they are not considered 'investments' made for earning dividend income.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2019.

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Fiduiciary Shares and Stock Pvt. Ltd. v. AIT · 159 ITD 554 · Section 14A · stock in trade · investment · dividend income · disallowance

Judgments citing Fiduiciary Shares and Stock Pvt. Ltd. v. AIT

Magic Share Traders Ltd., Ahmedabad vs. The ITO, Ward-2(1)(4), Ahmedabad

In the result, appeal of the assessee is partly allowed

ITA 635/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad11 Sept 2019AY 2014-15

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasadआयकर अपील सं./I.T.A. No. 635/Ahd/2018 ("नधा"रण वष" / Assessment Year: 2014-15) Magic Share Traders Ltd. बनाम/ Ito 101, Akashganga Building, Ward- 2(1)(4) Vs. Nr. Gujarat College Road, Ahmedabad Ellis Bridge, Ahmedabad- 380006 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aae Cm9 542 L .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri S. N. Soparkar & Parin
Section 43(5)Section 73

…01.04.2015, that is, A.Y. 2015-16, the amendment being curative in nature is applicable with retrospective effect for earlier years as well. Reliance was placed on the decision of Co- ITA No.635/Ahd/2018 [Magic Share Traders Ltd. vs. ITO] A.Y. 2014-15 - 6 - 159 ITD 554 (Mum.) for retrospective application of the amendment. The Ld. Senior Counsel thus submitted that in the light of alternative contention as well, the Explanation to sec. 73 has no application to loss arising from delivery based transactions in cash segments as well. The Ld. Senior Counsel thus submitted that there is no justifiable reason to hold…

Magic Share Traders Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(2), Ahmedabad

In the result, the assessee gets relief as claimed in Ground Nos

ITA 770/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad31 Oct 2018AY 2012-13

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad, Judicial Memebr

For Appellant: Shri S. N. Soparkar, A.R
Section 14ASection 28Section 43(5)Section 73

…he companies where principal business of the assessee is trading in shares, is essentially curative in nature and therefore has retrospective effect. For this proposition, the decision of the co-ordinate bench in the case of Fiduciary Shares & Stock (P.) Ltd. 159 ITD 554 (Mumbai) & Jalan Cement Works Ltd. 76 taxmann.com 230 (Kol.) was relied upon. 7.4 The learned senior counsel thus submitted that action of the Revenue has no legs to stand when tested on the touchstone on either of the legal position enumerated above. The learned senior counsel accordingly contended that both the AO as well as the CIT(A) misdire…

Canon Capital & Finance Ltd., Ahmedabad vs. The Jt.CIT, Range-3, Ahmedabad

In the result, the appeal of the assessee is partly allowed

ITA 759/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad25 Sept 2018AY 2010-11

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad, Judicial Memebr आयकर अपील सं./I.T.A. No. 759/Ahd/2016 ("नधा"रण वष" / Assessment Year : 2010-11)

For Appellant: Shri Jaimin Shah, A.R
Section 194JSection 40

…ecurities Ltd. [2016] 383 ITR 1 (SC). Identical issue has been ITA No. 759/Ahd/16 [Canon Capital And Finance Ltd. vs. Jt.CIT] A.Y. 2010-11 - 3 - adjudicated in favour of the assessee by co-ordinate bench in the case of Fiduciary Share & Stock P. Ltd. vs. ACIT 159 ITD 554 (Mum.) In parity, the disallowance under s.40(a)(ia) of the Act towards transaction charges requires to be deleted. The AO is directed accordingly to delete the disallowance. 4.4 Second issue relates to annual subscription charges paid to the Stock Exchange amounting to Rs.1 Lakh. 4.5 The learned AR for the assessee pointed out that the payment…

Icici Securities Ltd, Mumbai vs. DCIT RG 4(1), Mumbai

In the result, the appeal for the AY 2010-11 is partly allowed

ITA 4269/MUM/2013[2009-10]Status: DisposedITAT Mumbai19 Mar 2018AY 2009-10

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2009-10 & Assessment Year: 2010-11 Icici Securities Ltd. Dy. Commissioner Of Icici Centre, H.T. Parekh Income Tax Range Vs. Marg, Churchgate, 4(1), Mumbai-400020. Mumbai. Pan No. Aaaci0996E (Appellant) (Respondent) Assessee By : Mr. Yogesh A. Thar, Ar Revenue By : Mr. M.C. Omi Ningshen, Dr

For Appellant: Mr. Yogesh A. Thar, ARFor Respondent: Mr. M.C. Omi Ningshen, DR
Section 143(3)Section 40Section 40a

…im as speculation income/loss. Therefore, ICICI Securities the Ld. CIT(A) confirmed the above disallowance of Rs.76,80,828/- made by the AO. 7.3 Before us, the Ld. counsel of the assessee relies on the decision in Fiduciary Shares and Stock (P.) Ltd. v. ACIT 159 ITD 554 (Mum). It is submitted by him that the share trading activity of the assessee is incidental to its main business activity of stock-broking and carried out along with stock-broking activity. Common funds and managerial staff of the assessee carry out these activities. There is unity of control and management between the business of the assessee-co…

M/S. M.K.J. Developers Ltd., Kolkata vs. DCIT, Circle - 4, Kolkata

In the result, the appeal of the assessee is dismissed

ITA 1927/KOL/2017[2007-08]Status: DisposedITAT Kolkata14 Mar 2018AY 2007-08

Bench: Hon’Ble Shri M.Balaganesh, Am & Hon’Ble Shri S.S.Viswanethra Ravi, Jm] I.T.A No. 1927/Kol/2017 Assessment Year : 2007-08 M/S Mkj Developers Ltd. -Vs- Dcit, Circle-4, Kolkata [Pan: Aabcm 7076 L] (Appellant) (Respondent)

For Appellant: Shri Ravi Tulsiyan, FCAFor Respondent: Md. Usman, CIT(DR)
Section 143(3)Section 145Section 73

…that the said amendment is to be construed as retrospective in operation , in support of which, he placed reliance on the following decisions :- a) Co-ordinate Bench decision of Mumbai Tribunal in the case of Fiduciary Shares & Stock P Ltd vs ACIT reported in 159 ITD 554 ; b) Co-ordinate Bench of Mumbai Tribunal in the case of Kingpin Investment & Finance Pvt Ltd & Anr vs DCIT reported in 47 CCH 482 ; and c) Co-ordinate Bench of this Tribunal in the case of Jalan Cement Works Ltd vs CIT in ITA No. 1112 / Kol/2013. But we find that the Hon’ble Jurisdictional High Court in the case of PCIT vs M/s Snowtex Investment…

ACIT, Jaipur vs. State Bank of Bikaner & Jaipur, Jaipur

Appeal is dismissed

ITA 438/JPR/2009[2006-07]Status: DisposedITAT Jaipur29 Aug 2017AY 2006-07
For Appellant: Shri P.C. Parwal (CA)For Respondent: Smt. Rolly Agarwal (CIT)
Section 10Section 143(3)Section 14A

…f the Hon’ble Punjab & Haryana High Court in case of PCIT vs. State Bank of Patiala 98 CCH 35. Ld. Counsel for the assessee placed reliance on the decision of the Co-ordinate Bench of this Tribunal in the case of Fiduiciary Shares and Stock Pvt. Ltd. vs. AIT 159 ITD 554 to buttress the contentions that the shares held as stock in trade should be excluded for the purpose of computing disallowance u/s 14A of the Act, since they could not be said to be “investment” made for the purpose of earning dividend income. Further, reliance is placed on Judgment of the Hon’ble the Karnataka High Court in the case of CCI Ltd…

State Bank of Bikaner & Jaipur, Jaipur vs. ACIT, Jaipur

Appeal is dismissed

ITA 280/JPR/2009[2006-07]Status: DisposedITAT Jaipur29 Aug 2017AY 2006-07
For Appellant: Shri P.C. Parwal (CA)For Respondent: Smt. Rolly Agarwal (CIT)
Section 10Section 143(3)Section 14A

…f the Hon’ble Punjab & Haryana High Court in case of PCIT vs. State Bank of Patiala 98 CCH 35. Ld. Counsel for the assessee placed reliance on the decision of the Co-ordinate Bench of this Tribunal in the case of Fiduiciary Shares and Stock Pvt. Ltd. vs. AIT 159 ITD 554 to buttress the contentions that the shares held as stock in trade should be excluded for the purpose of computing disallowance u/s 14A of the Act, since they could not be said to be “investment” made for the purpose of earning dividend income. Further, reliance is placed on Judgment of the Hon’ble the Karnataka High Court in the case of CCI Ltd…

Trapu Investments P.Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

In the result, appeal filed by the assessee is treated as partly allowed

ITA 1123/MUM/2012[2008-09]Status: DisposedITAT Mumbai19 Apr 2017AY 2008-09

Bench: Shri B.R. Baskaran (Am)& Shri Ramlal Negi (Jm)

Section 73

…rospective in nature :- (a) Fiduciary Euromax Global Markets Ltd. (ITA Nos. 1349/M/2012 & 955/M/2014 dated 29.6.2016 (b) M/s. Kingpin Investment & Finance Pvt. Ltd. (ITA Nos. 309, 1717 & 1718/Mum/2007 dated 20.7.2016) (c) Fiduciary Shares & Stock (P) Ltd. (159 ITD 554) However, learned AR fairly admitted that Hon'ble Calcutta High Court has held in the case of Principal Commissioner of Income Tax Vs. M/s. Snowtex Investment Ltd. (GA No. 1695 of 2016 ITAT No. 199 of 2016 dated 22.11.2016) that amendment made to Explanation 1 shall not have retrospective effect. 6. Learned Departmental Representative on the co…

Anvil Fintrade P. Ltd, Mumbai vs. Asst CIT Cir 2(1), Mumbai

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

ITA 6788/MUM/2013[2010-11]Status: DisposedITAT Mumbai09 Nov 2016AY 2010-11

Bench: Shri G.S.Pannu & Shri Ram Lal Negim/S.Anvil Fintrade Pvt. Ltd. 201, 2Nd Floor, Krishna Kunj, Mehta Road, Opp. Sun Flower Hospital, Jvpd Scheme, Vile Parle (W), Mumbai -56. Pan: Aabca 9882 E ...... Appellant Vs. Dy.Commissioner Of Income Tax 2(1), Aaykar Bhavan, Churchgate, Mumbai 40020 .... Respondent

For Appellant: Ms. Neelam C. JhadhavFor Respondent: Shri Arun Shenoy
Section 143(3)Section 14A

…ied upon the following decisions:- (i) R.R.Chokhani Stock Brokers Pvt. Ltd. vs. ITO, ITA No.6826/Mum/2014 Dated 30/10/2015. (ii)Paresh P. Mehta vs. ITO, ITA No.1715/PN/2015 dated 18/03/2016. (iii)Fudiciary Shares & Stock Brokers Pvt. Ltd. vs. ACIT, (2016) 159 ITD 554(Mum)(Trib) (iv)CIT vs. India Advantage Securities Ltd., 380 ITR 471(Bom) 5. On the other hand, Ld. Departmental Representative pointed out that CIT(A) has upheld the disallowance in terms of the decision of his predecessor in the assessee’s own case for assessment year 2009-10 dated 28/12/2012. On this aspect of the matter, Ld. Representative fo…

Mr. Ajay Chawla, New Delhi vs. DCIT, New Delhi

In the result, the Appeal filed by the Assessee stands allowed

ITA 6091/DEL/2015[2008-09]Status: DisposedITAT Delhi18 Oct 2016AY 2008-09

Bench: Shri H.S. Sidhu

For Appellant: Sh. Ved Jain, Adv., Sh. AshishFor Respondent: Sh. Umesh Chander Dubey, Sr. DR
Section 143(1)Section 143(2)Section 143(3)Section 14ASection 234A

…in the case of Vidyut Investment Ltd. vs. ITO (2006) 10 SOT 284 (Delhi). - ITAT, Mumbai decision in the case of Yatish Trading Co. (P) Ltd. vs. ACIT (2011) 129 ITD 237 (Mumbai). - ITAT, Mumbai in the case of Fiduciary Shares & Stock (P) Ltd. vs. ACIT (2016) 159 ITD 554 (Mumbai) - Dy. DIT (OSD) vs. Shree Durga Capital Ltd., Mumbai ITA No. 7405/Mum/2011 dated 3.8.2015 – ITAT, Mumbai - ITAT, Mumbai in the case of Devkant Synthetics (India) Ltd. vs. ITO in ITA No. 2663-2665/Mum/2015 dated 28.10.2015) 7. On the contrary, Ld. DR opposed the aforesaid contention of the Ld. Counsel of the assessee and relied upon th…