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2013 (11) TMI 359 - AT - Income TaxDisallowance u/s 37 - Fines and penalties - Hed that:- Revenue has not specified any specific violation of any provision of law, so that it is difficult to understand the basis of its case. Clearly, the various defaults or deficiencies, which stand to be regulated by NSE in terms of its bye-laws, cannot be regarded as an infraction of law, so as to attract disallowance - Following decision of Haji Aziz and Abdul Shakoor Bros. vs. CIT [1960 (11) TMI 15 - SUPREME Court] - Decided against Revenue. Disallowance u/s 43B - Payment to PF and ESI funds - disallowance u/s.2(24)(x) r.w.s. 36(1)(va) of the Act on account of employee’s contribution - Held that:- Payment/s made within the grace period as allowed by virtue of any circular, order, etc. would be eligible for deduction u/s. 36(1)(va). The language of the provision accords primacy to not only the relevant Act, but also to any circular, order, notification, etc. issued thereunder. Two, a ‘due date’, for all practical purposes, as also by definition, is the date by which the relevant action (payment in the instant case) could be performed so as to be considered as eligible, and without inviting any penal consequences. As such, the benefit of the ‘grace period’ could not be disallowed, and which would rather bring the two enactments in harmony - Following decision of CIT v. Godaveri (Mannar) Sahakari Sakhar Kharkhana Ltd. [2007 (10) TMI 145 - BOMBAY HIGH COURT] - Decided partly in favour of Revenue. TDS u/s 194J - various payments to the Stock Exchange - Held that:- the Stock Exchange is billed for the total charges on these counts (i.e., including lease line and VSAT charges) by the Department of Telecommunication (DOT), which in turn allocates the same to its different constituents (which would be on some definite/utilization basis), without including any charge of its own. The payment to the Stock Exchange is thus, only in the nature of reimbursement. Even as, therefore, it may result in a TDS liability in the hands of the Stock Exchange (inasmuch as what it pays to the DOT is only the latter’s income), in-so-far as the individual brokers are concerned, who make the payments to the Stock Exchange, no tax is deductible inasmuch as the same is only a reimbursement of the charges as levied by DOT. - Decided in favor of assessee.
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