2013 (5) TMI 446

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ransaction charges. 2 On the facts and in the circumstances of the case, the impugned order of the Commissioner of Income Tax(Appeals) is contrary to law to be set aside and that of the Assessing Officer be restored." 2 The assessee is a member of the National Stock Exchange and is engaged in the business of share broking. The Assessing Officer made inter-alia disallowance/addition u/s 40(a)(ia) of the I T Act in respect of the payment made on account of transaction charges on the ground that the assessee has not deducted tax at source on such expenditure. 2.1 On appeal, the Commissioner of Income Tax(Appeals) has allowed the claim of the assessee by following the orders of this Tribunal for the Assessment Year 2006-07 as well as in the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e footing that section 194J is not attracted, then in the assessment year in question, no fault can be found with the assessee in not deducting the tax at source under section 194J of the Act and consequently, no action could be taken under section 40(a)(ia) of the Act. It is relevant to note that from the assessment year 2006-07 the assessee has been deducting tax at source while crediting the transaction charges to the account of the stock exchange though not as fees for technical services but as royalty. It is further relevant to note that it is not the case of the Revenue that on account of the failure on the part of the assessee to deduct tax at source, the Revenue has suffered presumably because, the stock exchange has discharged its ....