https://www.taxtmi.com/caselaws?id=165511 The note explains that Securities Transaction Tax is charged on the purchaser or seller in a taxable securities transaction, while a share broker or stock exchange may act only as collector and remitter. Where the assessee was merely an intermediary and not the purchaser or seller, the amount of STT paid on clients' transactions was not disallowable under section 40(a)(ib) of the Income-tax Act, 1961. On the same factual basis, section 88E was also treated as inapplicable to the assessee. The allegation that the arrangement was tax planning or a colourable device was rejected, and the disallowance was deleted. en-us Wed, 24 Feb 2010 00:00:00 +0530 Mon, 28 Jul 2014 10:43:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=165511 The note explains that Securities Transaction Tax is charged on the purchaser or seller in a taxable securities transaction, while a share broker or stock exchange may act only as collector and remitter. Where the assessee was merely an intermediary and not the purchaser or seller, the amount of STT paid on clients' transactions was not disallowable under section 40(a)(ib) of the Income-tax Act, 1961. On the same factual basis, section 88E was also treated as inapplicable to the assessee. The allegation that the arrangement was tax planning or a colourable device was rejected, and the disallowance was deleted. Case-Laws Income Tax Wed, 24 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=165511