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2014 (11) TMI 8 - AT - Income TaxNon deduction of TDS - VSAT charges and transaction charges paid to stock exchange disallowed u/s 40(a)(ia) - Whether the charges were composite charges for professional and technical services rendered by the stock exchange to its members and the assessee has failed to deduct TDS – Held that:- Insofar as the transaction charges are concerned, the assessee was liable to deduct TDS u/s 194J as held in Commissioner of Income-tax - 4(3) Versus Kotak Securities Ltd. [2011 (10) TMI 24 - Bombay High Court] - the disallowance under section 40(a)(ia), has rightly been made by the AO As regards V-SAT charges are concerned for sum amounting to ₹ 1.10 lakhs, following the decision in The Income Tax Commissioner Mumbai City-4 Versus Angel Capital & Debit Market Ltd. [2014 (5) TMI 584 - BOMBAY HIGH COURT] - these are not in the nature of technical services, no TDS was required and consequently, no disallowance under section 40(a)(ia) is called for. Dividend income disallowed u/s 14A r/w Rule 8D – Held that:- CIT(A) rightly held that rule 8D is not applicable for the AY 2007-08 as it is applicable from the AY 2008-09 as decided in Godrej & Boyce Mfg. Co. Ltd. v/s DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] - disallowance cannot be made on the basis of formula laid down by the rule 8D in the AY 2007-08 and some reasonable basis has to be adopted – Decided against revenue.
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