The Commissioner Of Income-Tax -4, Mumbai v. M/S L.k.p. Shares & Securities Ltd

Ladda IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL Lodging No. 5523 of 2010. The Commissioner of Income-tax -4, Mumbai ... Appellant. Versus M/s L.K.P. Shares & Securities Ltd. ... Respondent. Mr Vimal Gupta for the appellant. CORAM : J.P. Devadhar & A.R. Joshi, JJ. DATE : 10 January,2012. P.C. :- 1.Whether the Tribunal was justified in holding that V-SAT and data processing charges / transaction charges are not technical services falling under Section 194J of the Income-tax Act, 1961, is the question raised in this appeal. 2.The assessment year involved herein is 2005-2006. 3.This Court in the case of in Income Tax Appeal (L) No. 475 of 2011 (Income Tax Commissioner, Mumbai Vs. Angel Capital & Debit Market Ltd) Ladda decided on 28[th] July, 2011 has held that V-SAT charges paid by the assessee to the Stock Exchange are not covered under Section 194J of the Act. Accordingly, decision of the ITAT in holding that the payments made on account of V-SAT charges are not technical services cannot be faulted. 4.As regards the data processing charges/transaction charges is concerned, this Court in the case of CIT vs. M/s Kotak Securities Ltd. being Income-tax Appeal No.3111 of 2009 decided on 21[st] October, 2011 has held that the transaction charges are technical services falling under Section 194J of the Act, however, no disallowance could be made under Section 40 (a) and (ia) of the Act in the assessment year 2005-06. 5.In the light of the aforesaid judgment and order in the case of CIT vs. M/s Kotak Securities Ltd (cited supra), the question raised in this appeal cannot be entertained. Accordingly, the appeal is dismissed with no order as to costs. (A.R.Joshi,J) (J.P.Devadhar,J.)