TaxTMI 
TaxTMI 
2013 (7) TMI 1072
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....he facts and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) - 9 erred in law and on facts in confirming the disallowance of VSAT charges of Rs. 1,10,300/- (VSAT charges Rs. 1,10,300/- and Transaction charges of Rs. 1,00, 019/- aggregating to Rs. 210,319/-) paid by the appellant to NSE / BSE under section 40(a)(ia) read with section 194 J of Income Tax Act, 1961 . on the basis of the decision of the Bombay High Court in the case of CIT V. Kotak Securities Ltd. in ITA No.3111 of 2009. On the facts and in the circumstances of the case the learned Commissioner (Appeals)-9 erred in law and in facts m relying on the decision of the Bombay High Court in the case of CIT v. Kotak Securities Ltd.....
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....amend or alter any ground or add a new ground which may be necessary." Assessee-company, engaged in the business of stock broking, filed its return of income on 18.08.2008 declaring loss of Rs. 6.69 lacs.AO finalised the assessment u/s.143(3) of the Act on27. 12.2010, determining the total income of the assessee at Rs. 30.09 lacs. 2. Effective ground of appeal filed by the assessee is about disallowance of VSAT charges of Rs. 1.1 lacs and transaction charges of Rs. 1 lac paid by it to NSC/BSE. During the assessment proceedings, AO found that assessee had made payments towards the transaction and VSAT charges to BSE and NSC on account of services provided by them with regard to transactions in securities through exchange.AO was of the ....
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....igh Court in the case of Kotak Securities Ltd. ITA No. 3111/2009),he held that transaction charges were paid by the assessee to the stock exchange for rendering the managerial services which constituted fees for Technical services u/s 194J of the Act were applicable to VSAT charges, the assessee had not deducted tax at source as per the provisions of the said section of the Act while making the payment, that provisions of section 40(a)(ia) of the Act were applicable in the case under consideration. Finally, he uphold the disallowance of Rs. 2.1 lacs (1.10 lacs +1 lac) u/s. 40(a)(ia) of the Act made by the AO. 2.2.Before us, AR submitted that issue of payment under the head VSAT charges was decided by the Hon'ble High Court of Bombay in f....
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....cation by the FAA in light of the provisions of proviso to section 40(a)(ia).Therefore, in the interest of justice matter is restored back to the file of the FAA. Effective Ground of appeal filed by the assessee is allowed in its favour, in part. ITA/230/Mum/2012-AY.2008-09 3. Effective ground of appeal filed by the AO is about deleting the disallowance of Rs. 36.78 lacs on account of business expenses. During the assessment proceedings, AO found that assessee had not carried out share trading business for the year under consideration, that income of the assessee consisted of interest on Bank Deposits (27.28 lacs), Long Term Capital Gain (4.68 lacs) Dividend Rs. 1.32 lacs, Interest on Income Tax Refund 99,136/-,Commission Rs. 114/-....
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....he FAA. After considering the submissions of the assessee-company, he held that if business was suspended temporarily, it did not mean that same ceased to exist, that business expenses incurred had to be allowed, if same were incurred wholly and exclusively for the purpose of business, that wherever specific instances of disallowances on account of payment of transaction charges or other statutory disallowances were involved same have to be disallowed in accordance with the provisions of the Act. 3.2.Before us, AR submitted that expenditure was incurred for carrying out the business, that there was temporary cessation in the business of the assessee, that significant amount of the expenses were to the stock exchange in order to keep busi....