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2010 (11) TMI 663 - AT - Income TaxDisallowance u/s 14A - Rule 8D - assessee is a company engaged in the business of share broking, trading, arbitrage and investment in share and securities - when Rule 8D was not applicable, the Assessing Officer must adopt a reasonable basis or method consistent with all the relevant facts and circumstances after furnishing a reasonable opportunity to the assessee to place all germane material on the record - Decided in favour of the assessee by way of remand to AO Regarding penalty levied by the Stock Exchange/clearing corporation for violation of its bye-laws for procedural matter - unless the nature of penalty is spelt out, it cannot be concluded as to whether the payment in question is for infraction of law or compensatory in nature. If the payment in question is compensatory, then the assessee would be entitled to claim deduction - Decided in favour of the assessee by way of remand to AO Regarding disallowance u/s 40(a)(ia) - This issue had come up consideration in assessee's own case in the earlier assessment year and this Tribunal confirmed similar orders of the CIT(A) ITA No.5943/Mum/2009 for A.Y.2005-06 - Appeal is dismissed The payments made are in lieu of services rendered for carrying out certain work and the payments made therein fall within the purview of sec. 194C of the I.T. Act since it is the assessee who has to carry out the work of jobbing through one set of jobbers or another year after year - Appeal is allowed for statistical purpose
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