2008 (8) TMI 592 - ITAT MUMBAI

Depreciation on the membership right of the Stock Exchange - Held that:- the assessee would be entitled to claim depreciation on the WDV of the membership right of the stock exchange, Mumbai.

Claim of bad debts - held that:- These are incidental to the business of the assessee and going by the quantum of loss written off in individual cases, the wisdom of the assessee in writing them off as bad and irrecoverable, considering the cost of litigation etc. ; in our view should be considered as bona fide and plea irrecoverability should be accepted. The claim is therefore clearly allowable under section 28 of the Act. We, therefore, direct that the deduction as claimed by the assessee be allowed.

TDS on transaction charges paid to stock exchange u/s 194J - disallowance u/s 40(a)(ia) - held that:- transaction fee paid cannot be said to be a fee paid in consideration of the stock exchange rendering any technical services to the assessee. The provisions of section 194J are not attracted. - Consequently, the provisions of section 40(a)(ia) were also not attracted and therefore the disallowance made is directed to be deleted.