9911796707
TMI Blog2013 (5) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) ought not to have deleted the additions made by the AO invoking the provisions of Sec. 40a(ia) of the Act. 3. During the course of the scrutiny assessment proceedings, the Assessing officer observed that the assessee has paid ₹ 14,48,469/- on account of VSAT, Leaseline charges and transaction charges payable to stock exchange on account of services provided by it with regard to transactions in securities through the exchange. The AO was of the firm belief that the assessee ought to have deducted tax at source failing which provisions of Sec. 40a(ia) are clearly applicable. The AO sought explanation from the assessee. However, the submissions of the assessee were not accepted by the AO who was of the firm belief that pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question No. 1 2 which are as under: (A) Whether on the facts and in the circumstances of the case and in law the Hon ble Tribunal was justified in holding that VSAT and Lease Line charges paid to the Stock Exchange by the assessee company were allowable as a deduction from taxable income even though the assessee company had failed to deduct TDS thereon? (B) Whether on the facts and in the circumstances of the case and in law the Hon ble Tribunal was justified in holding that VSAT and Leaseline charges paid to the Stock Exchange by the assessee company were not paid in consideration of technical services rendered by the Stock Exchange within the meaning of Section 194J r.w. Explanation 2 to Section 9(1)(vii) of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return for the A.Y. 2007- 08 was already filed on 4.10.2007 and since no liability for TDS has been fixed so far, the assessee was under bonafide belief that it is not liable to tax on transaction charges. It is seen that from A.Y. 2008-09, the assessee has started deducting tax on transaction charges paid to Stock Exchange. Since the assessee was under bonafide belief on the date of the filing of the return for the year under consideration that there is no liability of TDS on transaction charges. We do not find any reason to confirm the disallowance made by the AO accepting the bonafide on the peculiar facts of the case. Findings of the Ld. CIT(A) are confirmed. 10. In the result, the appeal filed by the Revenue is dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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