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2015 (5) TMI 543 - AT - Income TaxDisallowance of compensation paid to sister concern for executing transactions on the Bombay Stock Exchange - Held that:- Assessee has submitted its computation of total income, balance sheet for the relevant assessment year along with details of brokerage received by HCGSSL from which it is clear that the sister concern HCGSSL declared the said amount in their profit and loss account which is placed. Even the CIT(A) has also observed that assessee has produced the particulars of the transaction and the basis on which the compensation of ₹ 7,57,600/- was paid to the said HSSBL. We found that the payment was made out of commercial expediency and for the purpose of business expenditure. The details of brokerage received by the HCGSSL filed before the lower authorities indicates that the sister concern has already offered the said amount for taxation. Accordingly, we direct the AO to delete the disallowance. - Decided in favour of assessee. Audit fees disallowed - Held that:- As no TDS was deducted therefrom. We confirm the action of the AO for the disallowance so made. - Decided against assessee. Disallowance of professional fees - no TDS was deducted - Held that:- assessee has deducted and paid tax on the professional fees on 30-7-2008, which was before the due date of filing return of income. In view of the decision of Virgin Creation [2011 (11) TMI 348 - CALCUTTA HIGH COURT] and the decision of Oracle Software India Ltd., 2007 (5) TMI 204 - DELHI High Court ) amendment made in Section 40(a)(ia) by the Finance Act, 2010, which provides for deductibility of expenditure if TDS paid within return filing due date, amendment is curative in nature, therefore, should be given retrospective operation. Accordingly, we direct the AO to verify the date of actual payment of TDS and if he finds that the same was paid before the last date of filing of the return, he should delete the disallowance so made. - Decided in favour of assessee for statistical purposes. Disallowance of expenditure on repairs and maintenance - assessee has not provided details of TDS deducted u/s.194C/194J - Held that:- CIT(A) directed the AO to allow the said expenditure after perusal of the bills along with the log book with reference to the provisions of Section 40(a)(ia) of the I.T.Act. We do not find any infirmity in this direction of CIT(A).- Decided in favour of assessee Disallowance of loss on trading in derivative transactions by treating the same as bogus - Held that:- Considering the entire material placed on record vis-ŕ-vis the questions and answers given by the assessee as well as by Directors of M/s Trishla Commodities, answers given during the course of cross verification, we found that assessee was not registered in Multi Commodities exchange as client of Trishla during the year under consideration. The transaction entered by the assessee was off market, wherein registration with MCX was not required. As per the bills, copy of the account of derivatives, bank statement evidencing the payment, we hold that transaction was off market and speculative in nature. Thus the loss so incurred was speculative loss, which is not eligible for set off against the long term capital gains declared by assessee. However, such speculation loss is eligible to be carried forward u/s.73(1) to be set up against speculation profit only in the subsequent year as per provisions of law. - Decided in favour of assessee.
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