TaxTMI 
TaxTMI 
2010 (1) TMI 919
X X X X Extracts X X X X
X X X X Extracts X X X X
....ough the expenses claimed in the assessment year 1005-06 got crystalised in the assessment year 2001-02 with the decision of Hon'ble Supreme Court; 2. The ld. CIT (Appeals) erred on facts and circumstances in directing the assessing officer to recalculate the rebate under section 88-E though there are number of expenses noted in the assessment order which have not been taken into account by the assessee while calculating the rebate of section 88-E." 3. The first issue for consideration relates to deleting the addition of Rs.3,84,01,623/- on account of SEBI registration fee. The facts of the case stated in brief are that the assessee during the year under consideration was mainly dealing in buying and selling of shares on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....13th and 14th November, 2004. It was also submitted that the liability to pay the fee was in dispute between all the share brokers and SEBI and the matter was sub-judice before the Hon'ble Supreme Court. After the decision of Hon'ble Supreme Court, the SEBI came out with the scheme on 15/07/2004 and directed the payment to be made on or before 15th November, 2004. Since the liability was quantified during the year the claim of expenses was rightly made by the assessee during the year and the payment was allowable in terms of section 43-B of the Act. The assessing officer, however, was of the view that the liability to pay the fee arose in earlier years and, therefore, the assessee should have made payment in earlier years. The assessing off....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... pay. These are undoubtedly some of the general characteristics, but as there may be various kinds of fees it is not possible to formulate a definition that would be applicable to all cases. If fee is regarded as a short of return for consideration for services rendered it is absolutely necessary that the levy of fees should, on the face of legislative provision, be co-related to the expenses incurred by the Government in rendering the service. The ld. CIT (Appeals) on the basis of the above came to the conclusion that the fees paid to SEBI was a charge for a special service rendered by SEBI to its members and was levied in order to meet the expenses incurred by SEBI in rendering the service to its members. He further placed reliance on the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....duction under section 43-B in the year in which the payment was made. Accordingly, we do not find any infirmity in the order of CIT(A) allowing the claim of the assessee. 7. The next issue for consideration relates to directing the assessing officer to the rebate allowable under section 88-E of the Act. The facts of the case relating to this ground of appeal are that the assessing officer while computing the tax payable allowed the rebate under section 88-E of the Act of Rs.2,76,81,059/-. On appeal the ld. CIT (Appeals) calculated the rebate under section 88-E at Rs.3,95,27,704/- as against Rs.2,76,81,059/- calculated by the assessing officer. 8. Before us it has been submitted by the ld. senior counsel for the assessee ....