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TMI Blog2010 (3) TMI 1215X X X X Extracts X X X X X X X X Extracts X X X X ..... pleted determining income at ₹ 5,87,75,300/- including the disallowance of depreciation on BSE Card ₹ 22,79,429/- and disallowance of VSAT and lease line charges included in the stock exchange expenditure u/s.40(a)(ia) vide order dated 24.12.2007 passed u/s.143(3) of the IT Act, 1961(the Act). On appeal, the ld. CIT(A) following the Tribunal order allowed the aforesaid claim of the assessee. 3. Aggrieved by the order of the ld. CIT(A) the revenue is in appeal before us. 4. Ground No.1 (i), (ii), (iii) and (iv) are against the deletion of disallowance of depreciation on BSE Card. 5. The brief facts of the above issue are that during the course of assessment proceeding it was observed by the AO that the assessee has claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciation on BSE Membership Card and accordingly the order passed by the ld. CIT(A) in this regard is reversed and that of AO is restored. The grounds taken by the revenue, are therefore allowed. 9. Ground No.2 to 9 are against the deletion of disallowance made in respect of payment of V-SAT charges and leaseline charges. 10. The brief facts of the above issue are that during the course of assessment proceeding the assessee was asked to submit the details of stock exchange expenditure of ₹ 47,49,141/- and TDS deducted thereon. In response, the assessee submitted the details of expenditure and confirmed that no TDS has been deducted on the ground that the said payment are not liable to deduct TDS u/s.194J of the Act. However, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges and lease line charges, other charges, BOLT charges, Demat charges, paid by the assessee. Stock exchanges as measure of providing infrastructure to its members installs VSAT, lease line facilities, BOLT Charges and Demat Charges to its members. Fees collected in this regard is nothing but fee paid for use of facilities provided by the stock exchange. Such facilities are available for use by any member. Satellite based trading enables trading member to trade on exchange from their place of work across the country. Stock exchange has to get permission of Department of Telecommunication for installing and setting up VSAT or lease line system. Charges levied by the stock exchange on its members are for the purpose of recovery of its cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carrying out transaction will not again be sufficient to hold that technical services are being rendered. All the above features present in screen based trading saves time. This is the result of improved technology. That does not mean that stock exchange is providing technical services. Members of the stock exchange and the public at large are beneficiaries of these technical improvements. Stock exchanges are not the owner of this technology to provide them for a fee to prospective use. They are themselves consumers of the technology. We are therefore of the view that learned CIT(A) was right in holding that the payment in question is not fee for technical services rendered. We therefore confirm the order of learned CIT(A) and dismiss this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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