TMI Blog2016 (1) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... cer with regard to the satisfaction of the condition, i.e., payment of tax on the impugned sum, subject to which only relief stands allowed to the assessee. - Decided in favour of assessee for statistical purposes. - I.T.A. No. 888/Mum/2014 - - - Dated:- 13-10-2015 - SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER For The Appellant : Shri N C Jain For The Respondent : Shri Ganesh Bare ORDER Per Joginder Singh, Judicial Member.: This appeal is by the Assessee directed against the Order of the Commissioner of Income Tax (Appeals)-8, Mumbai, ( CIT(A) for short) dated 08.11.2013 for the assessment year 2010-11 .The Assessee has raised following grounds of appeals. a) The learned CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bai held it as not the fees for technical services . It is for the time in 2011 that the issue was decided differently by the Bombay High Court. e) The learned CIT(A) failed to appreciate that the issue was highly contentious and was decided by the ITAT in assessee s favour which constituted a reasonable cause for not deducting tax at source. Existence of such dispute has been accepted by Hon ble Bombay High Court as reasonable cause justifying non-deduction of tax and consequent non-application of Section 40(1)(ia). 2. The assessee company is a wholly owned subsidiary of IDBI Bank Limited , engaged in fully integrated financial services provider viz Investment Banking , Portfolio Fund Management , Institutional Broking Dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to stock exchanges for failure of the assessee to deduct TDS u/s 194 J of the Act. 5. Aggrieved , The assessee filed first appeal with CIT(A) and contended that the assessee was under bona-fide belief that no TDS is to be deducted u/s 194 J as the transaction charges payable by the assessee does not constitute the fees for technical services which view has been approved by Tribunal in Kotak Securities Limited (supra) and the said decision of the Tribunal is reversed by Hon ble Bombay High Court in Kotak Securities case only in October 2011 while the impugned year is assessment year 2010-11 which ended on 31-3-2010 which is a date prior to judgment of Hon ble Bombay High Court in Kotak Securities case(supra) . Thus, assessee contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in its appeal for assessment year 2008-09 in ITA no. 618/Mum/2012 dated 18th February 2015 and also for assessment year 2009-10 in ITA no. 1404/Mum/2013 dated 08th May 2015, and hence the matter is covered in favour of the assessee. 7. The Ld DR relied on the decision of the authorities below. 8. We have considered the rival contentions and perused the material on record. We observe that in the decision by the Tribunal in Kotak Securities Limited v. Addl. CIT (in ITA No 1955/Mum/08), it held that services in respect of transaction charges paid/allowed by brokers to a stock exchange do not constitute technical services and, as such, there is no requirement to deduct TDS. However, the Hon ble Bombay High Court in Kotak Securities Limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ombay High Court in October 2011 and, hence, for the two assessment years 2008-09 and 2009-10, the view of the Tribunal in Kotak Securities Ltd. (supra) will hold the field. A decision by a Court of law relates back to the year of assessment, if not to the year from which the provision(s) being interpreted stands brought on the statute. The decision by Hon ble jurisdictional High Court in Kotak Securities Ltd. (supra) shall apply to A.Y. 2005-06 and the subsequent years. The Hon ble High Court has held that transaction charges paid to a stock exchange by its brokers is fees for technical charges, liable to TDS u/s. 194J of the Act. The Hon ble High Court further observing the matter to be disputed since long, i.e., between the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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