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2014 (4) TMI 307 - ITAT MUMBAIDisallowance of brokerage – Brokerage paid for the services rendered in connection to procurement institutional clients - Held that:- There is no change in the facts and circumstances of the case during the year - the allegations made by the AO that Porecha Brothers have low income are mere conjecture and surmises - onus is on the Revenue to prove that consideration paid by the assessee is in excess of the fair market value of the services for which such consideration is paid - there was proper documentation in the form of agreement between the assessee company and partnership firm – but, the fact cannot be denied that the reports were prepared by the people attached to the partnership firm – thus, it would be appropriate to allow the brokerage to the partnership firm to the extent of Rs.12 lakhs in each of the year as against Rs.15 lakhs paid by the assessee – Decided partly in favour of Assessee. Enhancement of capital gain – Sale of shares of BSE – Held that:- There is no justification in the action of the CIT(A) for allowing indexation from the year 2006, insofar as assessee company has taken the membership card from partnership firm in the year 1997 - the cost paid by the assessee company to the partnership firm is eligible for indexation from the year 1997 and not the year 2006 as per provisions of Section 55 (2)(b) r.w. clause (iii) of Explanation to Section 48 – thus, there is no infirmity in the action of the assessee in claiming indexation from the year 1997 while computing capital gains on transfer of shares of BSE Ltd. – Decided in favour of Assessee.
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