M/s. Sanat M. Dalal Securities P. Ltd. v. ITO(TDS)-3(2), Mumbai
[Citation -2016-LL-1003-17]
| Citation | 2016-LL-1003-17 |
|---|---|
| Appellant Name | M/s. Sanat M. Dalal Securities P. Ltd. |
| Respondent Name | ITO(TDS)-3(2), Mumbai |
| Court | ITAT-Mumbai |
| Relevant Act | Income-tax |
| Date of Order | 03/10/2016 |
| Assessment Year | 2008-09 |
| Judgment | View Judgment |
| Keyword Tags | deduct tax at source • stock exchange • non deduction of tds • fee for technical services |
| Bot Summary: | PAN No.AAFCS1400A Assessee by Shri N.S. Bhimani Department by Shri Suman Kumar Date of Hearing 3.10.2016 Date of Pronouncement 3.10.2016 ORDER Per B.R. Baskaran :- The assessee has filed this appeal challenging the order dated 24.6.2016 passed by learned CIT(A)-14, Mumbai for A.Y. 2008-09 confirming the order passed by the Assessing Officer u/s. The Assessing Officer treated the assessee as assessee in default since the assessee did not deduct tax at source on the transaction charges paid to the stock exchange. The Assessing Officer took the view that the assessee should have deducted tax at source u/s. 194J of the Act on the amount of 4,37,645/- paid by the assessee to the stock exchange. We have noticed that the above said issue has since been decided by Hon'ble Supreme Court in favour of the assessee in the case of CIT Vs. Kotak Securities Ltd. 384 ITR 1, wherein it was held that the transaction charges paid to the stock exchange is for providing facility and it is not fees for technical services and hence no tax is required to be deducted u/s. Accordingly, following the decision rendered by Hon'ble Supreme Court(supra), we set aside the order passed by learned CIT(A) and direct the Assessing Officer to delete the impugned demand raised upon the assessee u/s. In the result, appeal filed by the assessee is allowed. |