Recent decisions of Mumbai Tribunal

Enclosed are the following recent decisions of the Mumbai Tribunal:

Name of the Party	Authority/Court	In favour of	Issue Involved
Dinesh R. Vora	Mumbai ITAT	Assessee	The Tribunal held that exemption under section 54 of the Act would be admissible in respect of capital gains earned on the sale of four residential flats executed through single sale agreement if the same are invested in one residential house.
M/s. Varun Shipping Co. Ltd.	Mumbai ITAT	Assessee	The Tribunal held that no disallowance under section 14A of the Act could be made in a case where scheme of Tonnage Tax is applicable as the same is a separate code in itself.
M/s Forbes Gokak Ltd.	Mumbai ITAT	Assessee	The Tribunal held that no penalty under section 271(1)(c) of the Act could be levied where disallowance/addition is made based on a subsequent decision of  Supreme Court.
M/s. HSBC Securities and Capital Markets (India) Private Limited	Mumbai ITAT	Assessee	The Tribunal held that in case of a share broker, liability on account of Securities Transaction Tax (‘STT’) is the liability of the clients of the assessee who are buying and selling shares and, therefore, the provisions of section 40(a)(ib) will be applicable in those cases and it is because of this reason, the rebate under section 88E is also allowable in case of buyer/seller of shares under section 88E of the Act. The assessee is only a broker who has collected STT on behalf of the stock exchanges and has paid the same to the latter. Accordingly, it has been held that  STT is required to be excluded while computing the income of the assessee from brokerage. The Tribunal held that payment made by stock broker to stock exchanges on account of unfair trade practice and un-business like conduct is not for violation of law and, therefore, cannot be disallowed under Explanation to section 37(1) of the Act.

--

By

 

Rohit Garg

 

B.Com(H), ACA,LLB