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2015 (11) TMI 7 - AT - Income TaxAddition u/s. 14A - CIT(A) deleted the addition - Held that:- It is now settled that Rule 8D is applicable from A.Y. 2008-09 by the decision of the Hon’ble High Court of Bombay in the case of M/s. Godrej & Boyce Manufacturing Co. Ltd. [2010 (8) TMI 77 - BOMBAY HIGH COURT]. However, at the same time, the Hon’ble High Court has held that there should be reasonable disallowance. In our considered view, disallowance @5% of the dividend income should meet the ends of justice. We, accordingly direct the AO to restrict the disallowance to 5% of the dividend income. Decided partly in favour of assessee. Disallowance made u/s. 40(a)(ia) - VSAT charges and Leaseline charges paid to stock exchange - Failure to deduct TDS - Held that:- This issue is squarely covered in favour of the assessee and against the Revenue by the decision of the Hon’ble Bombay High Court in the case of CIT Vs Angel Capital and Debit Market Ltd. [2014 (5) TMI 584 - BOMBAY HIGH COURT ] which has been followed by the Tribunal in assessee’s own case in A.Y. 2005-06 held VSAT and Lease Line charges paid by the assessee to Stock Exchange were merely reimbursement of the charges paid/payable by the Stock Exchange to the Department of Telecommunication - the VSAT and Lease Line charges paid by the assessee do not have any element of income, deducting tax while making such payments do not arise – Decided against Revenue. Treatment of Short Term Capital Gain as business income - Held that:- This issue arose in A.Y. 2006-07 and the Tribunal following the earlier order of the Tribunal in A.Y. 2005-06 directed the AO to treat the capital gains under the head ‘Capital Gains’ – Decided against Revenue.
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