Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (4) TMI 392 - AT - Income TaxAddition on account of foreign education expenditure of the son of the Director of the assessee company - Held that: The education of the children is sole and exclusive responsibility of the parent and cannot be mixed up with the business of the family owned company - Expenditure on higher education of the son of the director, in the facts and circumstances of the case cannot be said to be wholly and exclusively for the purpose of the business of the assessee and without any extra commercial circumstance – Decided against the assessee. Regarding depreciation of BSE card and FEDAI membership - It is clear from the developments of BSE as well as from the amended provisions of the Act that after corporatisation of BSE and corresponding amendment in the relevant provisions of the Income Tax Act, the Membership Card of the erstwhile BSE ceased to exist and the cost of shares of the recognized Stock Exchange allotted in lieu of the card under the scheme of demutualization shall be the cost of acquisition of original membership of the Stock Exchange; whereas the cost of the capital asset being trading or clearing rights of recognized Stock Exchange acquired under the said scheme shall be deemed to be nil. As regards the membership of FEDAI is concerned, despite specific query from the Bench about the status of the membership card of FEDAI; whether the same development/charges as taken place as in the case of membership card of BSE, the ld AR has expressed his inability to say anything and requested that the matter may be remanded to the record of the CIT(A) for consideration of all the relevant facts and decide the same – Decided in favor of the assessee by way of remand to AO Deduction for payment of penalty on violation of bye-laws of Stock Exchange - held that:- penalty for short payment of margin money was a compensatory payment under rule of stock exchange which is allowable as revenue expenditure. Membership fee paid to Dubai Gold and Commodity exchange. - Held that:- the membership expenditure is undoubtedly a capital in nature. The membership of DGCX was once for all and the expenditure would have an enduring benefit. Therefore, in case the assessee would have taken membership, the entire membership fee was to be treated as a capital expenditure.
|