Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2121 - ITAT MUMBAIAddition under section 36 - amount utilized the borrowed funds for specified persons (related parties) - outstanding sundry debts against the persons namely Aayush Shah, Anika and Yugam who were the persons defined under section 40A(2)(b)on which no interest was charged - Held that:- Admittedly, the assessee, though, had surplus funds but from the facts on file it is clear that the assessee had used the overdraft funds for settlement of accounts of the persons specified under section 40A(2)(b) of the Act. However, the other facts remain that the assessee had also received interest from the FDR pledged with the bank in relation to the overdraft facility. Under the circumstances, the disallowance, if any, in our view, should be restricted to net interest paid on the overdraft amount in relation to payments made by the assessee on behalf of the specified persons under section 40A(2)(b). We accordingly restrict the disallowance to the extent of net interest paid by the assessee on overdraft account. Partly decided in favour of the assessee. Depreciation on stock exchange card - Held that:- Tribunal in the case of "Pavak Securities (P) Ltd. vs. ITO" [2013 (9) TMI 608 - ITAT MUMBAI] wherein held when the membership ceased to exist and in lieu of the card, new asset came into existence i.e. 1000 shares as well as rights to trade and clearing in the stock exchange and the acquisition of the cost of trade and clearing has been provided to be nil as per proviso to section 55(2)(ab) of the Act, then the entire cost of membership as stands in the books of accounts of the assessee would be treated as cost of acquisition of 1000 shares which is not a depreciable asset and hence the claim of the assessee to claim depreciation on demutualization or corporatization of the stock exchange card would not be justifiable. Thus it is held that the assessee is not entitled to depreciation on the BSE card. - Decided against assessee.
|