TaxTMI 
TaxTMI 
2014 (4) TMI 307
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.... Private Limited Company established in 1997-1998. The assessee is into share brokering business connected with Mumbai Stock Exchange. Earlier this business was exclusively held by M/s Porecha Bros. as partnership firm or original flagship concern of the group. This firm was card member of stock exchange. The partners then decided to corporatize their business and hence established the Private Limited Company. The said partnership firm then transferred the card to the assessee company with the tacit understanding that the firm will continue to get the brokerage or rather sub-brokerage from the business conducted by the assessee company with the institutional clients of the erstwhile partnership firm. Accordingly the business is being carrie....
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.... of services rendered along with the list of institutional clients were also placed on record. The assessee company has deducted tax at source out of such brokerage paid to M/s Porecha Brothers, payment was made by account payee cheque and the same was proved by necessary documentation. Neither expenses nor the recipient of payment was in doubt nor identity of the recipient. We found that the assessee company has taken over the membership card of partnership and as per the understanding they were supposed to pay brokerage to the said partnership firm. We found that in the scrutiny assessment for the assessment year 2005-06, similar claim of payment was accepted by the department. There is no change in the facts and circumstances of the case....
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....forwarding its report and recommendations. Even though it was alleged by the AO that such reports bear the name of assessee company, it was reply of the assessee that since these reports are to be forwarded to the clients of the assessee company, therefore, these reports bear the name of assessee company. However, the fact cannot be denied that these reports were prepared by the people attached to the partnership firm. Considering the totality of the facts and circumstances of the case vis- à-vis kind of services rendered, we deem it appropriate to allow the brokerage to the partnership firm to the extent of Rs.12 lakhs in each of the year as against Rs.15 lakhs paid by the assessee. Thus, the ground taken by the assessee in both the....
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.... as a transfer. During the year under consideration in May, 2007, the assessee company has transferred 9,123 shares of BSE Ltd. As the assessee company has taken the stock exchange card from the partnership firm in the year 1997, the price paid by it was taken as the basis for computing the indexed cost of acquisition and accordingly long term capital gain was offered by the assessee. However, the CIT(A) held that since the shares were allotted to the assessee company in January, 2006, the assessee is eligible for indexation only from January, 2006 and not from the year in which stock exchange card was transferred in the name of the assessee company. There is no justification in the action of the CIT(A) for allowing indexation from the year....