9911796707
TMI Blog2024 (10) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... 024 (5) TMI 1233 - ITAT MUMBAI] , M/s. Vivriti Cibus [ 2023 (12) TMI 806 - ITAT MUMBAI] and SME Pool Series [ 2024 (2) TMI 1383 - ITAT MUMBAI] it is observed that this issue has already been dealt with by the jurisdictional co-ordinate bench extensively which has taken a view in support of the assessee. We also find no infirmity in the order of the ld. CIT(A) and we find no justification in taking any other view. Therefore, the grounds of appeal are dismissed. - Shri Amarjit Singh, AM And Ms. Kavitha Rajagopal, JM For the Revenue : Shri B. Laxmi Kanth For the Assessee : Shri Niraj Seth ORDER PER KAVITHA RAJAGOPAL, J M: This appeal has been filed by the Revenue, challenging the order of the learned Commissioner of Income Tax (Appeals) ( ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) is justified in not appreciating the findings made by the ld. A.O. in the order u/s. 201/201(1A) of the I. T. Act, 1961 regarding assessee s TDS liability u/s. 194LBC of the I. T. Act, 1961. 3. Brief facts of the case are that the assessee is a Securitization Trust (ST) which is controlled under the trusteeship of IDBI Trusteeship Ltd. and is engaged in raising fund on a private placement basis through issuance of pass through certificates for fund acquisition of loan portfolio from financial institutions hereby termed as the Originator . Pursuant to a survey action conducted in the case of Nirmaan RMBS Trust, which was also controlled by IDBI Trusteeship Services Ltd., the learned Assessing Officer (ld. A.O. for short) observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an originator who is the owner of the financial assets which is acquired by a securitization company or the trust for the purpose of securitization which is pooling of various types of debts and selling the same as financial instruments to the SPV. The SPV issues Pass Through Certificates (PTC) where all the risks and rewards are transferred to SPV in lieu of cash payments made by the PTC holders. The outstanding receivables pertaining to the securitized debts are credited in the trust accounts which are then distributed to the originators. The receipts are in the nature of principal amount, servicing fee and interest. The issue of whether or not the assessee is entitled to deduct TDS on the payments made to PTC holders u/s. 194LBC of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assignment and that the originator in the present case has not subscribed to PTCs and, therefore, the same will not amount to an investment. The ld. CIT(A) further held that sub section (1) of section 115TCA of the Act entitles that any income accruing or arising to an investor is to be taxed under this section for which the enabling provision to deduct tax source is section 194LBC of the Act. The ld. CIT(A) held that since the originator in this case has not subscribed to any PTCs, it cannot be termed as an investor as defined in section 194LBC r.w.s. 115TCA of the Act and further no investment has also been shown to have been made by the originator, thereby determining that the originator in this case is not an investor. The provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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