Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (3) TMI 612 - AT - Income TaxDisallowance for "loss on Mark to Market" on trading of Derivatives - The assessee had been engaging in marked to market on daily basis and accordingly provision is made in the P&L Account against anticipated loss. AO disallowed the provision on account of loss in open future contracts debited in the profit & loss account and added it back. - HELD THAT:- Taking into account the guidance note issued by ICAI, which the companies have to follow, we are of the opinion that the assessee has rightly claimed the provision in the Profit & Loss Account. We are of the considered view that the assessee has a strong case to make provision for loss on mark-to-market basis. We therefore delete the disallowance. Disallowance w.r.t V-SAT charges and Lease Charges and Transaction charges - TDS Deduction - Dept. appealed on account of deletion of disallowance made in respect of V-SAT and lease line charges - HELD THAT:- CIT held that the VSAT and Lease line charges are not payments which come within the domain of `fee for technical services’ and they are also not for `any work’ done by NSE for the member broker. The TDS is, therefore, not deductible on the same. The CIT(A) further observed that in so far as the deductibility of TDS on transaction charges are concerned, the I.T.A.T, Mumbai in the case of KOTAK SECURITIES LTD. VERSUS ADDITIONAL COMMISSIONER OF INCOME-TAX [2008 (8) TMI 592 - ITAT MUMBAI] has held that the Stock Exchange does not provide managerial services and the fees paid by the member to the Stock Exchange is not for any technical services rendered, so TDS is not deductible on the same. We, therefore, refrain ourselves to take any adverse view on the view taken by the CIT(A), we uphold the order of the CIT(A) on both these issues.
|