2013 (9) TMI 1251 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A)-8, Mumbai for A.Y. 2007-08.

Issue 1: Disallowance of transaction charges, Leaseline charges, and VSAT charges u/s. 40(a)(ia).
The Revenue contended that charges were for professional services by stock exchange, requiring TDS deduction. However, Tribunal held charges not 'fees for technical services,' citing precedent. CIT(A)'s decision upheld due to conformity with precedent.

Issue 2: Addition of mark to market losses in derivative transactions.
Assessee claimed loss as expenditure u/s. 37(1) based on Supreme Court ruling. CIT(A) accepted plea following ITAT precedent. Revenue failed to provide contrary decision. Tribunal upheld CIT(A)'s decision.

General: Grounds 3 and 4 not considered independently. Appeal by Revenue dismissed.

This judgment by Appellate Tribunal ITAT Mumbai addressed issues of disallowance of charges under section 40(a)(ia) and addition of mark to market losses in derivative transactions for A.Y. 2007-08. The Tribunal upheld the CIT(A)'s decision in both instances, citing conformity with precedent and lack of contrary evidence provided by the Revenue. The appeal was ultimately dismissed, with grounds 3 and 4 deemed general in nature and not considered independently.