TaxTMI 
TaxTMI 
2011 (8) TMI 1277
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.... V. Easwar (President) This appeal by the assessee relates to the assessment year 2006-07. The assessee is a company engaged in the business as NSE share-broker. The appeal arises out of the assessment order passed under section 143(3) of the Income Tax Act, 1961, on 24th November 2008. 2. The first ground is directed against the disallowance of NSE charges of ₹ 1,79,470/- and VSAT charges....
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....of brokerage to sub-brokers was made for mobilizing business for securities transaction and therefore the payment was outside the purview of section 194H of the Act. Objection was also taken by the assessee to the proposed disallowance of the VSAT charges. The objections were overruled by the Assessing Officer, who disallowed both the payments. The disallowance was confirmed by the CIT(A) and henc....
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....eed on the assumption that it was this section that the Assessing Officer had in mind. Be that as it may, since the issue is covered in favour of the assessee by the aforesaid order of the Tribunal, respectfully following the same we hold that the payment of VSAT charges does not amount to payment of fees for professional or technical services and therefore section 194J is not applicable. Conseque....
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....on (iii) to have the same meaning assigned to it under the Securities Contracts (Regulation) Act, 1956, which we have already referred to. The effect of these provisions is that any payment of commission or brokerage made in respect of a transaction in securities is not covered by the requirement of tax deduction under section 194H of the Act. Therefore, the assessee which has paid commission or b....