TaxTMI 
TaxTMI 
2025 (3) TMI 1994
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....ng the disallowance of claim of Rs. 143.00 crores relating to the contribution to Core Settlement Guarantee Fund (Core SGF) made by the AO. 3. The revenue is aggrieved by the decision of Ld CIT(A) in granting relief in respect of addition made by the assessee u/s 14A of the Act on the basis of revised workings, without appreciating that the assessee has made revised claim without filing revised return of income as mandated by the decision of Hon'ble Supreme Court rendered in the case of Goetze (India) Ltd vs. CIT (157 Taxman 1)(SC). 4. We shall first take up the appeal of the assessee first. The solitary issue urged therein is related to the disallowance of contribution to Core SGF. We notice that an identical issue has been decided b....
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....rantee Fund" (Core SGF). The above said Circular contains guidelines with regard to - --the objective of Core SGF, --Corpus of Core SGF, --Minimum Required Corpus (MRC), --Contribution to Core SGF. --Management of Core SGF, --Access to (i.e., utilization of) funds of Core SGF, --Default waterfall mechanism for meeting the defaults of trading members, --Analysis of Credit risk through stress testing and back testing etc. ........................ 6. We heard the parties and perused the record. We notice that the assessee herein, besides its own contribution to Core SGF, is also receiving contributions from NSE and trading members towards Core SGF. As not....
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....e SGF" will act as akin to insurance mechanism in order to protect the stock market from the failures of the clearing members in settling their respective obligations. 9. We noticed earlier that the contributors to Core SGF are the assessee, NSE and other trading members. When the contributions are made by so many persons, it is difficult to accept the proposition of the AO that the assessee is the actual owner of all those funds. Further, the funds so received have been invested separately and their identity is well maintained. There cannot be any dispute that the funds available with Core CGF could be utilized only for the stated purposes, i.e., the assessee cannot use them for its own purposes. Further, as noticed earlier, the C....
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.... "12. In view of the foregoing discussions, we are of the view that the contribution made by the assessee to core SGF is allowable as business expenditure in both the years under consideration. Accordingly, we set ITA Nos. 1216 & 1218/Mum/2023 aside the order passed by the Ld. CIT(A) and direct the AO to delete the impugned disallowance made in both the years under consideration." 4.1 Since the facts surrounding this issue is identical with the facts prevailed in AY 2015-16 and 2017-18, following the decision rendered by the co-ordinate bench (referred above) in the assessee's own case, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the disallowance of contribution to Core SGF. 5. We shall now ta....
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....e issue of 14A, AO has not given reasons as to why he was not satisfied with computation made by the appellant. This ground of appeal is hence allowed and additions made u/s 14A are deleted." 6. It is the contention of the revenue that the assessee has made revised claim without filing revised return of income as stated by Hon'ble Supreme Court in the case of Goetze (India) Ltd vs. CIT (157 Taxman 1)(SC). 6.1 The ld A.R, however, submitted that the AO did not record any dissatisfaction over the workings furnished by the assessee and hence he could not make any addition u/s 14A of the Act. In this regard, the Ld A.R placed his reliance on the decision rendered in the assessee's own case in 2010-11 and 2011-12 in ITA No.6726 & 6727/Mum/....