2013 (12) TMI 526

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.... raised two substantive grounds of appeal. Ground No. 1 relates to the deletion of the addition made u/s. 40(a)(ia) in respect of leaseline and transaction charges which were paid to the stock exchange for the services by the stock exchange to its members and on which payment the assessee has failed to deduct tax at source. 3. At the very outset, the rival parties agreed that this issue is partly covered in favour of the assessee and partly covered in favour of the Revenue. The Hon'ble Jurisdiction High Court in the case of CIT Vs Kotak Securities 340 ITR 333 has held that transaction charges paid by the assessee to the Stock exchange for trading through BOLT system constitute fees for technical services covered u/s. 194J and the assesse....

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....& 88A to 88E also apply after the total income is computed u/s. 115JB of the Act. Since assessee's total income includes the income from the taxable securities transactions, the assessee is entitled to a deduction of the amount equal to the STT paid. 7. Facts and circumstances being identical, we have no hesitation in following the decision of the Tribunal cited hereinabove. Accordingly, this ground of the revenue is dismissed. 8. In the result, the appeal filed by the Revenue is partly allowed. ITA No. 5361/M/2011 - Assessee's appeal 9. The assessee has raised three substantive grounds of appeal. The sum and substance of assessee's grievance is that the Ld. CIT(A) has erred in confirming the disallowance of Rs. 22,77,095/- bein....