Sri Mahalakshmi Shares Pvt Ltd., ... vs Assessee
- CitationI.T.A. No.527/Mds/2015
Ratio decidendi
The rule this decision rests on
The Tribunal follows its own earlier decision in the assessee's case for AY 2009-10, which held that where the CIT(Appeals) has categorically found that section 194H does not apply to the assessee's transactions, and the Revenue has not appealed the similar finding for the earlier year, there is no reason to interfere with that finding, and the Revenue's appeal is to be dismissed; the Tribunal accordingly holds, following that order, that the disallowance of commission payments under section 40(a)(ia) read with section 194H cannot be sustained and allows the assessee's appeal.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Sri Mahalakshmi Shares Pvt. Ltd, The Assistant Commissioner of 85, Armenian Street, Vs Income Tax, Chennai 600 001. Company Circle VI(4), Chennai 600 034. [PAN:AAACS 9439G] (अपीलाथ'/Appellant) ("(यथ'/Respondent)
अपीलाथ क ओर से / Appellant by : Shri.R.T. Vijayaraghavan, C.A. यथ क ओर से / Respondent by : Shri. N. Madhavan, IRS, JCIT.
सन ु वाई क तार ख/Date of hearing : 16.04.2015 घोषणा क तार ख /Date of Pronouncement : 16.04.2015
आदे श / O R D E R
PER CHANDRA POOJARI, ACCOUNTANT MEMBER
This appeal filed by assessee is directed against the order of
the Commissioner of Income Tax (Appeals)-15, Chennai, dated
23.12.2014.
:- 2 -: I.T.A.No.527/Mds/2015.
2. The only grievance of the assessee in this appeal is with regard
to disallowance of commission payments made to sub brokers u/s.
40a(ia) and read along with section 194H.
3. After hearing both the parties, we are of the opinion that a
similar issue came up for consideration before this Tribunal in
assessee's own case for the assessment year 2009-2010 in ITA
No.351/Mds/2013 and C.O.No.47/Mds/2013. Vide order dated
22.08.2013, the Tribunal has decided the issue in favour of the
assessee by observing as under:-
''8. We have heard both sides, perused the materials on record and have gone through the orders of authorities below. In this case, the ld. CIT(Appeals) has given a categorical findings that the provisions of section 194H are not applicable to assessee's case. The ld. CIT(Appeals) has given a similar finding for the assessment year 2008-09 also. The Department has not preferred any appeal against the order of the ld. CIT(Appeals) for the assessment year 2008-09 and the ld. DR has fairly submitted that the Department had accepted the order of the ld. CIT(Appeals). In view of the above facts and circumstances of the case, we find no reason to interfere with the order passed by the ld. CIT(Appeals) and accordingly, the appeal filed by the Revenue is dismissed".
:- 3 -: I.T.A.No.527/Mds/2015.
4. Respectfully, following the above order of the Tribunal, we are
inclined to decide the issue in favour of the assessee.
5. In result, the appeal of the assessee in ITA No.527/Mds/2015
is allowed.
Order pronounced in the open court at the time of hearing on Thursday, the 16th day of April, 2015 at Chennai.
Sd/- Sd/- (च ला नागे "साद ) (चं पज ू ार ) (CHALLA NAGENDRA PRASAD) (CHANDRA POOJARI) या#यक सद य/ JUDICIAL MEMBER लेखा सद य/ ACCOUNTANT MEMBER चे"नई/Chennai. #दनांक/Dated:16.04.2015. KV
आदे श क त&ल'प अ(े'षत/Copy to: 1. अपीलाथ /Appellant 2. यथ / Respondent 3. आयकर आय* ु त (अपील)/CIT(A) 4. आयकर आय* ु त/CIT 5. 'वभागीय त न-ध/DR
6. गाड फाईल/GF.
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