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Issues Involved:
1. Disallowances u/s 40(a)(ia) for VSAT charges, lease line charges, and transaction charges. 2. Disallowance of depreciation on a motor vehicle registered in the name of the Director, not the company. 3. Applicability of explanation to section 37(1) for penalties levied by SEBI. Issue 1: Disallowances u/s 40(a)(ia) for VSAT charges, lease line charges, and transaction charges: The first appellate authority ruled that VSAT charges do not fall under "fee for technical services" as per section 194J, hence no TDS is required. Citing relevant case laws, the order was upheld for VSAT charges. However, lease-line and transaction charges disallowance was reversed based on Tribunal decisions. The Mumbai D-Bench and A Bench decisions were considered, leading to the reversal of disallowance for lease-line and transaction charges. Issue 2: Disallowance of depreciation on a motor vehicle registered in the name of the Director: The AO disallowed depreciation on a motor vehicle not registered in the company's name. However, the Tribunal referred to relevant case laws stating that registration under the Motor Vehicles Act is not essential for ownership. Citing judgments from the Bombay High Court and the Delhi A-Bench of the Tribunal, the disallowance was dismissed, allowing depreciation on the motor vehicle. Issue 3: Applicability of explanation to section 37(1) for penalties levied by SEBI: The Revenue's appeal against the deletion of a penalty levied by BSE was dismissed. The Tribunal referred to a jurisdictional Tribunal decision regarding SEBI penalties, emphasizing that penalties were for risk management rather than punitive purposes. Following the precedent, the deletion of the penalty was upheld. In conclusion, the Revenue's appeal was dismissed, and the assessee's appeal was allowed based on the discussions and decisions outlined for each issue.
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