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TMI Blog2010 (11) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... 67,194/-. 3. The AO disallowed the depreciation on Membership Cards of FEDAI and BSE on the ground they are being commercial right/intangible asset acquired after 1st April, 1998. The CIT(A) confirmed the disallowance made by the Assessing Officer. 4. The learned representatives of the parties agreed that these issues are covered by the decision of ITAT in assessee s own case for Assessment Year 2004-05 vide ITA Nos. 3554/Mum/07 and 4282/Mum/07, order dated 6th October, 2010. A copy of the order has been filed. 5. As regards depreciation on BSE Card, the ITAT in Assessment Year 2004-05 held that the issue is no more res-integra and is covered by the judgment of the Hon ble Supreme Court in the case of Techno Shares and Stocks Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... curities through the exchange. The AO examined and discussed the issue elaborately in his order and held that the payments made on account of lease-line charges, VSAT Data processing charges/transaction charges by whatever name called are technical services falling within the purview of section 194J and are therefore liable for deduction of tax, therefore, the sum of ₹ 10,64,101/- added to the income of the assessee for non deduction of TDS. The CIT(A) confirmed the action of the Assessing Officer. 9. We have heard the learned representatives of the parties and perused the record. We find that this issue is covered in favour of the assessee by various decisions of ITAT including the decision of Kotak Securities Ltd. Vs. Addl. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulate the disallowance. 12. We have heard the learned representatives of the parties and perused the material on record. We find that the disallowance u/s 14A shall be calculated in the light of latest judgment of the Hon ble jurisdictional High Court in the case of Godrej Boyce Manufacturing Co. Ltd. vide Income Tax Appeal No. 626 of 2010 and W.P. of 758 of 2010, judgment dated 12.08.2010. Therefore, we remit the matter back to the file of the AO with a direction to compute the disallowance u/s 14A in the light of the judgment of the Jurisdictional High Court in the case of Godrej Boyce Manufacturing Co. Ltd., after providing reasonable opportunity of hearing to the assessee in the matter. 13. In the result, the appeal of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of disallowance of deduction of ₹ 1,50,000/- made on account of club membership charges. 18. The AO disallowed the payment made by the assessee of ₹ 1,50,000/- by treating the same as capital in nature. The CIT(A) following the decision of his predecessor in assessee s own case for Assessment Year 2004-05, allowed the claim of the assessee. 19. The learned representatives of the parties agreed that this issue is covered by the decision of the ITAT in assessee s own case for Assessment Year 2003-04 in ITA Nos. 5765/Mum/06 and 5414/Mum/06 vide order dated 6th August, 2010 wherein the ITAT held that .As far as expenditure in acquiring corporate membership and expenses incurred in using club facil ities are concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowable as revenue expenditure and the same is not penal in nature and for infraction of any law. The said view was taken in the following decisions:- 1. ACIT Vs. Ramesh Damani, ITA No. 5143/Mum/2006 (Mum) 2. Classic Shares and Stock Broking Services Ltd. V. DCIT, 11 SOT 377 (Mum). 3. Goldcrest Capital Markets Ltd. Vs. ITO, 2 ITR 355 (Mum) 23. Since the issue in the year under consideration is identical to that of Assessment Year 2003-04, we respectfully follow the decision of ITAT and in the light of that we confirm the order of CIT(A) on this count. 24. Ground No.4 is in respect of VSAT and Leaseline charges. 25. The AO made the addition on account of VSAT and leaseline charges paid by the assessee on the ground that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) held that the liability to pay 20% of disputed interest to SEBI has crystallized during financial year 2004-05 in view of SEBI (Interest Liability Regularization Scheme) 2004 and in view of Supreme Court judgment in case of Mahalaxmi Sugar Mills co. Vs. CIT, the interest on SEBI fee partakes the character of SEBI fee itself and is thus allowable on the basis of actual payment u/s 43B. 29. The learned representatives of the parties agreed that this issue squarely covered by the decision of ITAT, Mumbai in the case of Star Share Stock Brokers Ltd. in ITA Nos. 5187 6012/Mum/08 vide its order dated 29th April, 2009 wherein it was held that admittedly the interest regularization scheme was framed by the SEBI to f inalize th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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