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TMI Blog2015 (1) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... However, at the same time, we cannot deny that no expenditures have been incurred for earning the dividend income. Considering the facts of the case in totality and in the interest of justice and fair play, we direct the AO to restrict the disallowance to 11,565/- being the amount of dividend received during the year and delete the balance amount. - Decided in favour of assessee in part. Membership fee paid - capital expenditure or business expenditure - Held that:- In the decisions of the Hon’ble Supreme Court in the case of Techno Shares 5.05 lakhs as a capital expenditure, we restore this issue to the file of the AO to decide the claim of depreciation - Decided in favour of assessee in part for statistical purpose. Credit of TDS - Held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO considered the interest on borrowed funds at ₹ 31,09,479/-. Proceeding further, the AO noticed that the assessee has debited its profit and loss account by sum of ₹ 5.05 lakhs, which was one time admission fee paid to M/s. National Spot Exchange Ltd for membership. The assessee was asked to explain why the said payment should not be treated as capital expenditure. The assessee explained that the said payment was made as non-refundable one-time membership fee to M/s. National Spot Exchange Ltd and, hence, claimed as business expenditure. The AO dismissed the claim of the assessee and treated the said expenditure as capital in nature. 4. Aggrieved by these disallowances, the assessee carried the matter before the Ld. CIT(A) b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce amount. The assessee gets part relief for ground No. 1. 8. Ground No. 2 & 3 are inter-linked. The assessee claimed ₹ 5.05 lakhs being membership fee paid to the M/s. National Spot Exchange Ltd as business expenditure. The Revenue authorities have treated the same as capital expenditure as they were of the opinion that by paying this onetime membership fee, the assessee would be deriving enduring benefit. Further, by paying this membership fee, the assessee is entitled to trade in the M/s. National Spot Exchange Ltd. Therefore, the said membership fee is nothing but a capital expenditure. 9. Before us, the Ld. Counsel for the assessee relied upon several judicial decisions. In alternative, the assessee claimed that if the said exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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