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2016 (5) TMI 814 - AT - Income TaxDisallowance under section 14A r.w. Rule 8D - Held that:- Disallowance under section 14A r.w. Rule 8D cannot be made in respect of shares held as stock-in-trade and therefore direct the AO to delete the disallowance made under section 14A r.w. Rule 8D. See India Advantage Securities Ltd. [2015 (6) TMI 140 - BOMBAY HIGH COURT ] - Decided in favour of assessee Disallowance of Business Loss by invoking Explanation to section 73 - Held that:- The amendment inserted in Explanation to section 73 of the Act by Finance (No. 2) Act, 2014 w.e.f. 01.04.2015 is clarificatory in nature and would therefore operate retrospectively from 01.04.1977 from which date the Explanation to section 73 was placed on the statute since this amendment to section 73 of the Act ‘ or a company the principal business of which is the business of trading in shares ’ brings in the assessee whose principal business is trading of shares. Therefore, the loss incurred in share trading business by such companies, i.e. like the assessee will not be treated as speculation business loss but normal business loss, and hence the same loss can be adjusted against other business income or income from any other sources of the year under consideration. In this view of the matter, we direct the AO to allow the assessee’s claim for setting off the loss from ‘share trading business’ against ‘other business income’ and income from any other sources during the year under consideration. Since we have allowed the assessee’s primary contention/ground, we do not consider it necessary to adjudicate the alternative contention raised by the assessee. Disallowance of transaction charges paid to the Stock Exchange - non TDS - Held that:- Respectfully following the decision of the Hon'ble Apex Court in the case of Kotak Securities Ltd. [2016 (3) TMI 1026 - SUPREME COURT] we hold that no TDS is deductible on payment of transaction charges paid by members to Stock Exchange under section 194J of the Act, as they are not for technical services rendered but are in the nature of payments for facilities provided by the Stock Exchange and accordingly direct the AO to delete the disallowance made on account of transaction charges paid to Stock Exchange. - Decided in favour of assessee
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