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2011 (3) TMI 896 - ITAT, MUMBAIDisallowance - BSE Card - The entire case of the AO is on the premise that in the event of sale of the shares which the assessee acquired on Corporatization and demutualization of BSE as a Company, the assessee would take the benefit of the provisions of section 55(2)(ab) of the Act and claim the cost of acquisition at the price at which the assessee originally paid for acquiring BSE Card ignoring the depreciation on the BSE Card which the assessee availed from the period of acquisition of the BSE Card till exchange of shares for the BSE Card. - the assessee has sold 6386 shares of BSE Ltd. out of 10000 shares of BEE Ltd., which it had got on Corporatization and demutualization of the BSE as a limited company - While computing capital gain on such transfer the assessee calculated its cost of acquisition on the basis of the written down value and Re.1 which had paid per share at the time of issue of shares by BSE Ltd - With regard to the remaining shares of BSE Ltd. which the assessee holds the question of computation of capital gain would continue to be the same basis on which the assessee has computed capital gain in A.Y 2008-9. In view of the above we are of the view that the CIT(A) was justified in deleting the addition made by the AO - Decided in favour of assessee. Provision of section 41(1) and 38(iv) of the Income Tax Act - Non-deduction of tax at source in respect of payment to lease line charges by the assessee to the stock exchange whether lease line charges is in the nature of fees for professional and technical services rendered and as to whether provisions of section 194J of the Act would apply and consequently disallowance could be made for non deduction of tax at source under section 40(a)(ia) of the Act could be made - held that:- lease line charges are not in the nature of fees for technical services rendered so as to attract the provisions of section 194J of the Act - Do not find any infirmity in the order of the CIT(A) deleting the addition made by the AO - Decided in favour of assessee.
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