2014 (5) TMI 192 - HC - Income Tax

Revenue's appeal dismissed by Bombay HC due to prior unfavorable judgments. No costs awarded.

The Bombay HC dismissed the revenue's appeal as the issues raised were previously decided against the revenue in earlier judgments. The appeal was ... Transaction charges paid to the stock exchanges - fees for technical services - TDS u/s 194J - Held that:- transaction charges paid by the assessee to the stock exchange constitute 'fees for technical services' covered u/s 194J of the Act – thus, the assessee was liable to deduct tax at source while crediting the transaction charges to the account of the stock exchange – Decided against Revenue. Following Commissioner of Income-tax - 4(3) Versus Kotak Securities Ltd. [2011 (10) TMI 24 - Bombay High Court], since both the revenue and the assessee were under the bonafide belief for nearly a decade that tax was not deductible at source on payment of transaction charges, no fault can be found with the assessee in not deducting the tax at source in the assessment year in question and consequently disallowance made by the assessing officer under Section 40(a)(ia) of the Act in respect of the transaction charges cannot be sustained. The Bombay High Court dismissed the appeal by the revenue as the questions raised were already decided against the revenue in previous judgments. The appeal was dismissed with no order as to costs. (Case citation: 2014 (5) TMI 192 - BOMBAY HIGH COURT)