9911796707
TMI Blog2013 (11) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... rred by the Revenue are directed against the common order dated September 21, 2010 passed by the learned Commissioner of Income-tax (Appeals)-6, Mumbai for the assessment years 2005-06 and 2007-08. Since the facts are identical and common issue is involved, both these appeals are disposed of by this common order for the sake of convenience. Briefly stated the facts of the case extracted from I. T. A. No. 8317/Mum/ 2010 for the assessment year 2005-06 are that the assessee-company is engaged in the business of mutual fund distributors and investment agents. The return was filed declaring total income of Rs. 9,07,237 which was processed under section 143(1) of the Income-tax Act, 1961 (the Act). On perusal of post assessment records the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de assessment order dated November 25, 2009 passed under section 143(3) read with section 147 of the Act. On appeal, the learned Commissioner of Income-tax (Appeals) following the appellate order for the assessment year 2006-07, however, allowed the claim of the assessee for both assessment years. Being aggrieved by the order of the learned Commissioner of Incometax (Appeals) the Revenue is in appeal before us challenging in all the common grounds the deletion of disallowance of sub-brokerage under section 40(a)(ia) of the Act. At the time of hearing the learned Departmental representative supports the order of the Assessing Officer. On the other hand, learned counsel for the assessee submits that this issue stands covered in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities ; ..' As can be seen from the above provision, the commission or brokerage definition does not include transactions in securities. There is no doubt that mutual funds are categorised as securities on which there is no objection from the Revenue either before the Assessing Officer or before the Commissioner of Income-tax (Appeals). In fact the Commissioner of Income-tax (Appeals) also gives a finding that the Assessing Officer has not disputed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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