2015 (2) TMI 1252

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....i, dated 17.9.2008 pertaining to the assessment year 2005-06 . Both the appeals were heard together and are being disposed of by this common order, for the sake of convenience. I .T.A. No.7037/Mum/2008 (by Revenue) 2. The Revenue has raised 8 substantive grounds of appeal. At the very outset, the ld. Representative from both the sides agreed that the issues involved in these appeals are covered either in favour of the assessee of in favour of the Revenue by the earlier orders of the Tribunal. 3. The first ground relates to the disallowance of depreciation of membership of Bombay Stock Exchange. We find that the First Appellate Authority while allowing the claim of depreciation on BSE card, has followed the decision of the Tribunal ....

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....ng the decision of the coordinate bench , Ground Nos.3 to 5 are dismissed. 8. Grounds No.6 to 8 relate to the disallowance of client assistance charges amounting to Rs. 23,27,39,958/-. This issue has been considered by the First Appellate Authority in Para 5 of his order, wherein he has followed his own finding given in AY 2004-05 while deleting the addition. Similar issue arose in AY 2002-03 which was considered by the Tribunal in ITA No.7035/Mum/2006, order dated 25.6.2010. The Tribunal has discussed the issue at length from paragraphs 8 to 15 of its order and at paragraph 15, after considering the facts and submissions held that it is not a case that falls u/s 40A of the Act. Accordingly, allowed the appeal of the assessee and dismiss....

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..... Ground No.3 relates to disallowance of Rs. 37,40,000/-. This issue has been considered by the AO in para13 of his order, wherein the AO has observed that the assessee has not claimed loss on Future and Option margin in the computation of income. However, the assessee vide clause 5 to the note attached forming part of the return has stated that "certain customers of the assessee had taken position in the derivative market due to huge fluctuation in the price of the derivatives contract margin eroded and the position was squared up. The AO however, observed that the assessee could not recover the amount from its customers. It was brought to the notice of the AO that the amount of Rs. 37.40 lakhs has been debited under the head "Bad Debts" i....