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2015 (11) TMI 1543 - ITAT MUMBAI

2015 (11) TMI 1543 - ITAT MUMBAI - TMI - TDS u/s 194J - transaction charges paid to stock exchanges - disallowance u/s. 40(a)(ia) - Held that:- The matter is restored to the file of the assessing authority who shall delete the disallowance u/s. 40(a)(ia) upon verification of the assessee’s claim, i.e., of payment of the tax on the impugned sum by BSE (payee) as the assessee in the present case has already furnished a certificate from BSE by including the same in its income offered to tax for the .....

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the assessee’s claim would get proved with reference to its audited accounts and tax return/s. The matter cannot be decided on the basis of bald/unsubstantiated claims. The Revenue authorities ought to have called for the said returns. Under the circumstances, it is considered only proper and in the interest of justice that the matter is restored back to the assessing authority to allow the assessee an opportunity to establish its claim/s. - Disallowance u/s. 14A r/w rule 8D - Held that:- Di .....

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enditure, covered under rule 8D(2)(iii). No material has been led even before the tribunal to show that no administrative expenditure, i.e., relating (directly or indirectly) to tax-exempt incomes, stands incurred by the assessee for the relevant year. The presumption in law would under the circumstances hold. The Revenue has in my view rightly invoked the decision by the Hon'ble jurisdictional High Court in Godrej & Boyce Mfg. Co. Ltd. (2010 (8) TMI 77 - BOMBAY HIGH COURT ), which is explicit o .....

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ent by : Shri B. S. Bist ORDER Per Sanjay Arora, A. M.: This is an Appeal by the Assessee directed against the Order by the Commissioner of Income Tax (Appeals)-9, Mumbai ( CIT(A) for short) dated 23.12.2014, partly allowing the Assessee s appeal contesting its assessment u/s.143(3) of the Income Tax Act, 1961 ( the Act hereinafter) for the assessment year (A.Y.) 2010-11 vide order dated 15.3.2013. 2. The appeal raises four grounds, which we shall take up in seriatim. The first ground agitates t .....

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ion 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 other hand, relies on the decision in the case of Dy. CIT vs. Jamnadas Khusaldas & Co. (in ITA No. 480/Mum/2011 dated 14.6.2013) and Mape Securities Pvt. Ltd. vs. DCIT (in ITA No. 842/Mum/2012 dated 24.11.2014), wherein, taking a liberal view, the Tribunal held that in view of the dispute with regard to the applica .....

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being in relation to the interpretation of a provision of law, to the time when the provision was brought on the statute-book. The Hon ble Court made an exception for A.Y. 2005-06 only, while the year under reference is A.Y. 2010-11. At the same time, however, the assessee has per its paper-book produced a certificate (dated 06.9.2013) from BSE stating that it had included the entire transaction charges of ₹ 4.43 lacs in its income offered to tax for the year (PB pg.28). The apex court in .....

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he decision by the tribunal in Mape Securities (P.) Ltd. (supra) is again based on the payment of tax on the relevant sum by the payee itself. Further, the law has since been amended, addressing the said dichotomy, so that where the payee furnishes a certificate to the effect that tax on the impugned sum stands deposited, the payer would not be deemed to be in default, saving the rigor of section 40(a)(ia). Though the said amendment stands made by Finance Act, 2012 w.e.f. April 1, 2013, the Hon& .....

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, no corresponding finding by the Revenue, with the certificate being in fact not before the Assessing Officer (A.O.). The matter is, accordingly, restored to the file of the assessing authority who shall delete the disallowance u/s. 40(a)(ia) upon verification of the assessee s claim, i.e., of payment of the tax on the impugned sum by BSE (payee) by including the same in its income offered to tax for the year. In other words, that the condition of the amended section 40(a)(ia) stands met. I dec .....

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tent of ₹ 1,23,473/- was counted doubly while depositing the tax, did not find favour with him. Before the ld. CIT(A), who also called for a remand report, the assessee s claim was that this amount was, as a measure of precaution, deposited ad hoc in excess, pending the audit of the accounts. The first appellate authority confirmed the addition as the assessee was not able to reconcile the difference, i.e., between the brokerage income as per books of account and that on which tax stood de .....

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having been paid in excess - by whatever amount. That is, the validity of the assessee s claim would get proved with reference to its audited accounts and tax return/s. The matter cannot be decided on the basis of bald/unsubstantiated claims. The Revenue authorities ought to have called for the said returns. Under the circumstances, it is considered only proper and in the interest of justice that the matter is restored back to the assessing authority to allow the assessee an opportunity to esta .....

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