Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (6) TMI 467 - AT - Income TaxDepreciation - BSE Membership card - intangible asset - section 32(1)(ii) - Held that:-Depreciation is allowable on the cost of the Membership Card u/s 32(1)(ii) of the Income Tax Act. See Techno Shares and Stocks Ltd. Vs The Commissioner of Income Tax IV(2010 - TMI - 77379 – Supreme Court of India). Decided in favor of the assessee. Disallowance of penalty u/s 37 of the Act-Business expenditure--Held that:-Penalty/fine paid to SEBI for violation of regulations regarding procedures to be followed for entering into share transaction were just compensatory in nature and there is no infringement of any law. Decided against the Revenue. Bad Debts-Share broker -Held that: - The amount receivable by the share broker, from his clients against the transactions of purchase of shares on their behalf constitutes debt which is a trading debt. The brokerage/commission income arising from such transactions very much forms part of the said debt and when the amount of such brokerage/commission has been taken into account in computation of income of the assessee of the relevant previous year or any earlier year, it satisfies the condition stipulated in section 36(2)(i) and the assessee is entitled to deduction u/s 36(1)(vii) by way of bad debts after having written of the said debts from his books of account as irrecoverable. Decided in favor of assessee. Credit of Total TDS on Gross Dividend-Net Dividend taxed in hands of Assessee-Share Broker-Held that:- What is to be assessed is the income derived from dividend. Out of the total dividend shown as income ,the assesse has refunded a part of dividend to the clients which have been rightfully reduced from his income and thereby it had offered net dividend amount for taxation along with TDS. Therefore, the total of TDS as well as the net dividend was shown as income. Decided in favor of the assessee. Losses in Speculation business-Share Broker- Rule of consistency to be followed--Held that:-Although principles of res judicata do not apply to Income Tax proceedings since every A.Y. is separate and distinct, However, Revenue cannot take a different view for a particular year and Rule of Consistency should be followed .Assessee should be allowed to set off loss on sale of investments against profit on shares. See CIT vs. Gopal Purohit CIT (2010 - TMI - 35188 – Bombay High Court).Decided in favor of the assessee. Advances not recoverable written off- Held that:-Non-recovered debt cannot be treated as a bad debt u/s 37(1)(vii) of the Act since the amount has not been offered for taxation in any earlier years as income of the assessee. .Further, the amount also cannot be allowed as business loss since the same relates to a different assessment year and does not relate to the impugned assessment year. Decided against the assessee.
|