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TMI Blog2015 (5) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Disallowance of professional fees - no TDS was deducted - Held that:- assessee has deducted and paid tax on the professional fees on 30-7-2008, which was before the due date of filing return of income. In view of the decision of Virgin Creation [2011 (11) TMI 348 - CALCUTTA HIGH COURT] and the decision of Oracle Software India Ltd., 2007 (5) TMI 204 - DELHI High Court ) amendment made in Section 40(a)(ia) by the Finance Act, 2010, which provides for deductibility of expenditure if TDS paid within return filing due date, amendment is curative in nature, therefore, should be given retrospective operation. Accordingly, we direct the AO to verify the date of actual payment of TDS and if he finds that the same was paid before the last date of filing of the return, he should delete the disallowance so made. - Decided in favour of assessee for statistical purposes. Disallowance of expenditure on repairs and maintenance - assessee has not provided details of TDS deducted u/s.194C/194J - Held that:- CIT(A) directed the AO to allow the said expenditure after perusal of the bills along with the log book with reference to the provisions of Section 40(a)(ia) of the I.T.Act. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia) - ₹ 8,05,864/- 1. On the facts and in the circumstances of the case and in law, the (IT (A) erred in confirming the action of the AO of disallowing ₹ 805,864/under section 40 (a) (i a) of the Act. 2. The Appellant prays that it be held that the action of the lower authorities be deleted. Ground No.3: Disallowance of repairs and maintenance expenses ₹ 4,36,848/- : 1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in giving direction to the AO to allow the expenditure subject to perusal of supporting documents though the same were made available to him in the course of the appellate proceedings. 2. The Appellant prays that repairs and maintenance expenditure as claimed in the return of income be allowed to it. Ground No.4: Disallowance of short-term capital loss- ₹ 155.41.499/- 1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in confirming the action of the AO of making disallowance of ₹ 155,41,499/-, being loss on trading in derivatives transactions, by treating the same as bogus. In upholding that the disallowance of loss of ₹ 1,55,41,499/-, as bogus, the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Share Brokers Ltd.(HSSBL), ₹ 757,600/- after having discussion at para 6, on the plea that consideration was paid as compensation to the sister concern and not as a broker. By stating that assessee was not able to furnish its books of account for verification, AO disallowed the same. By the impugned order, the CIT(A) confirmed the action of the AO by observing at para 3 that assessee has not produced copy of the return of income filed by sister concern (HSSBL) to ascertain as to whether the income has been offered to tax. We found that assessee has submitted its computation of total income, balance sheet for the relevant assessment year along with details of brokerage received by HCGSSL from which it is clear that the sister concern HCGSSL declared the said amount in their profit and loss account which is placed at page 511 to 533 of the paper book. Even the CIT(A) has also observed that assessee has produced the particulars of the transaction and the basis on which the compensation of ₹ 7,57,600/- was paid to the said HSSBL. We found that the payment was made out of commercial expediency and for the purpose of business expenditure. The details of brokerage received b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed ₹ 1,55,41,499/- being loss on trading in derivative transactions by treating the same as bogus. The AO has dealt this issue exhaustively in para 4 of his order. The AO has recorded the statement u/s.131 of Ms. Varsha Vaidya director of the assessee company on 14-12-2010. He has also recorded the statement of Managing Director of the assessee company Mr. Arvind Bhinde on 15-12-2010 and also recorded the statement of Mr. Anil Agarwal the Proprietor of M/s Trishla Commodities, the MCX Broker through whom transactions has been entered into by the assessee. The CIT(A) has called for the remand report from the AO which is submitted by the AO on 24-01-2012. The assessee company has filed letter dated 14-2-2012 during the course of the appellate proceedings in rebuttal to the remand report of the AO. However, the CIT(A) has confirmed the disallowance of short term capital loss incurred on derivative transactions by upholding the action of the AO to the effect that the loss so incurred was bogus. 9. We have considered rival contentions and found that assessee has surrendered the shares of Bombay Stock Exchange under the buyback offer and earned long term capital gain of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter dated 10.11.2010 issued by MCX, wherein it is critically stated that you were not registered as client of M/ s. Trishla Commodities in MCX and the transaction for which contract notes were issued by M/ s. Trishla Commodities have not entered in M CX Please offer your comments. Ans- I have nothing to explain. However I am surprised to see the findings of the MCX . This reply is given by Mr. Bhide as he also came to know for the 1st time that transaction entered by the company was off market and not through MCX. He was also of the opinion that the transaction should be entered through MCX only and if it is not entered through MCX then it will be bogus. ''Q.22 It means the transaction entered into through M/s. Trishla Commodities, as claimed, are bogus? Ans- Yes, It can be said like that if MCX confirms the same. ''Q.23 Please tell whether at any instance, you have received any amount from M/s Trishla Commodities.? Ans- No, I have never received any amount from that concern during the course of trade. 11. It was the contention of ld. AR that the AO not considered the answer to Question No. 14 and 19 which are as under: Q.14. Now I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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