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TMI Blog2010 (8) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. 4 We have heard the parties. The assessee company is in the business of share broking. The return filed by the assessee was selected for scrutiny and the assessment was completed u/s 143(3) of the Act. It was noticed by the Assessing Officer that the assessee has debited bad debts written off of ₹ 3,46,373/- to the P L account. The Assessing Officer was of the opinion that the assessee has not satisfied the conditions of sec. 36(2); accordingly he disallowed the claim of the assessee. 5 The ld counsel for the assessee submitted that now this issue stands covered in favour of the assessee by the decision of the Special Bench of the Tribunal in the case of Shri Shreyas S Morakhia decided in ITA No.3374/Mum/2004 v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has carried on the share broking activities as a Member of NSE and also carried out for purchase and sale of shares and securities on its own account. After examining the P L account, the Assessing Officer has noted that the assessee has worked out the profit/loss from those activities in combined manner in the computation of income and has segregated the profit in share trading and offered it under the head speculation income . The Assessing Officer has further noted that the assessee had not apportioned the expenditure pertaining to carry out the share trading activities. He also was of the opinion that the share trading activities are in the nature of speculation business in terms of Explanation to sec. 73 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to trading of the assessee s own trading of the share and accordingly make disallowance but at the same time it should not be more than already disallowed in the original assessment. The Assessing Officer is directed to give reasonable opportunity of being heard to the assessee. 11 Next issue is in respect of disallowance made u/s 14A of the Act. 12 We have heard the parties. As noted by the Assessing Officer, the assessee has declared dividend income of Rs.. 2,16,192/-. The Assessing Officer was of the opinion that for earning the said income, the assessee must have incurred the expenditure and has the dividend was exempt so, the expenditure incurred for earning the said dividend is required to be disallowed u/s 14A of the Act. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now, we take up the appeal of the revenue in ITA No.4200/Mum/2009. 16 The first ground is in respect of interest paid as per SEBI Interest Liability Regularization Scheme, 2004. 17 We have heard the parties. The assessee is a Member Broker and SEBI Regularizations 1992 are applicable. The SEBI introduced turnover tax on their annual turnover as a registration fee on the broker and the same was disputed by the broker and the SEBI appointed Expert Committee to examine the grievance of the broker and submit the report. The Committee appointed by the SEBI held that the turnover based registration fee was reasonable. The said matter landed into litigation and reached before the Supreme Court and the Supreme Court upheld the regulations le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e charges treating the same as fee for technical services as the assessee has failed to deduct the tax and disallowed u/s 40(ia). 20 The ld counsel for the assessee submitted that now this issue stands covered in favour of the assessee by the decision of the Tribunal in the case Kotak Securities vs ACIT (124 TTJ 241)/(24 DTR 214). On the other hand, the ld DR fairly conceded that now the issue stands covered in favour of the assessee by the decision of the Tribunal in the case of Kotak Securities (supra). 21 We, therefore, respectfully following the decision of the co-ordinate bench in the case of Kotak Securities (supra), confirm the order of the ld CIT(A) by dismissing the ground taken by the revenue on this issue. 22 In the resu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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