The Commissioner Of Income Tax-4 v. M/S. S.g.asia Holdings (I) P. Ltd

ASN IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1507 OF 2011 The Commissioner of Income Tax-4. v. M/s. S.G.Asia Holdings (I) P. Ltd. ..Appellant. ..Respondent. Mr. Vimal Gupta, Sr .Advocate with Ms. Padma Divakar for the Appellant.Mr. Atul K. Jasani for the Respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATE : 6[th] November, 2012 PC: Following questions of law are raised by the revenue in this appeal. a) Whether on the facts and in the circumstances of the case and in law the Tribunal was right in deleting the disallowance of Rs.32,14,649/- made in respect of VSAT, lease Line and transaction charges without realizing that fact that these were composite charges for professional and technical services rendered by the exchange to its members and the assessee has failed to deduct TDS thereon? b)Whether on the fact and in the circumstances of the case and in law the Tribunal was right in ignoring the fact that these services are exclusive in nature and in as much they can only be availed by member of stock exchange? c)Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in accepting the argument that these are mere reimbursements when the position in law is very clear that determining and income component in a specific payment and then deducting TDS would render the entire concept of withholding tax difficult to apply and that TDS has to be deducted on gross payments? d) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in ignoring the facts that use of technology and algorithmic based programs have converted an erstwhile physical market into a digitally operated market? e)Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in ignoring the fact that the services rendered by the brokers are not standard services but services that has been developed to cater to the needs of the broker community to facilitate trading? 2)Counsel for the parties state that the aforesaid questions stand answered against the revenue by the judgment of this Court in the case of Commissioner of Income Tax Mumbai City-4 v. Angel Capital & Debit Market Ltd. in Income Tax Appeal Lodging No.475 of 2011 and Commissioner of Income Tax v. Kotak Securities Ltd. reported in (2012) 340 ITR 333 (Bom.). Accordingly, the appeal is disposed of in terms of the order passed in the aforesaid decisions. (M.S.SANKELCHA, J.) (J.P. DEVADHAR, J.)