2013 (5) TMI 903

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.... Rs. 14,48,469/- paid to Stock Exchange and the Ld. CIT(A) ought not to have deleted the additions made by the AO invoking the provisions of Sec. 40a(ia) of the Act.   3. During the course of the scrutiny assessment proceedings, the Assessing officer observed that the assessee has paid Rs. 14,48,469/- on account of VSAT, Leaseline charges and transaction charges payable to stock exchange on account of services provided by it with regard to transactions in securities through the exchange. The AO was of the firm belief that the assessee ought to have deducted tax at source failing which provisions of Sec. 40a(ia) are clearly applicable. The AO sought explanation from the assessee. However, the submissions of the assessee were not acce....

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....owever, we are concerned with only issues raised in question No. 1 & 2 which are as under: " (A) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was justified in holding that VSAT and Lease Line charges paid to the Stock Exchange by the assessee company were allowable as a deduction from taxable income even though the assessee company had failed to deduct TDS thereon? (B) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was justified in holding that VSAT and Leaseline charges paid to the Stock Exchange by the assessee company were not paid in consideration of technical services rendered by the Stock Exchange within the meaning of Section 194J r.w. Expla....