9911796707
TMI Blog2013 (11) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 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 Assessing Officer observed that the assessee-company had shown to have earned gross receipts of Rs.4,75,52,110 as income from brokerage and out of it, the assessee had paid sub-brokerage Rs. 3,49,41,624 to various parties without deducting tax at source. Hence, according to the Assessing Officer an amount of Rs.3,49,41,624 is liable to be disallowed under section 40(a)(ia) of the Act which has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 of the assessee by the order of the Tribunal in assessee's own case in Asst. CIT v. S. J. Investment Agencies P. Ltd. and vice versa in I. T. A. No. 3820/Mum/2009 and C. O. No. 01/Mum/2010 for the assessment year 2006-07 order dated February 23, 2011. He also placed on record the copy of the said order of the Tribunal. We have carefully considered the submissions of the rival parties and perus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 that units of mutual funds are securities as per the Securities Contracts (Regulation) Act, 1956. The assessee is in the business of mutual funds distribution and investment agent. From the details of brokerage received and service tax deducted therefrom it can be seen that out of the brokerage income of Rs. 8,28,56,873 the brokerage income of Rs. 8,27,47,095 is from mutual funds. The balance b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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