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2014 (5) TMI 584 - HC - Income TaxAllowability of deduction – VSAT and Lease line charges paid to stock exchange – Failure to deduct TDS – Technical services u/s 194J r.w. Explanation 2 to 9(1)(vii) of the Act – Held that:- Tribunal was of the view that VSAT and Lease Line charges paid by the assessee to Stock Exchange were merely reimbursement of the charges paid/payable by the Stock Exchange to the Department of Telecommunication - the VSAT and Lease Line charges paid by the assessee do not have any element of income, deducting tax while making such payments do not arise – Decided against Revenue. Deletion of disallowance u/s 37(1) of the Act – Payment towards penalty paid to Stock exchange – Held that:- Tribunal was of the view that the amount paid as penalty was on account of irregularities committed by the assessee’s clients - payments were not on account of any infraction of law and hence allowable as business expenditure – thus, the explanation to section 37 would not apply – Decided against Revenue.
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