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2018 (9) TMI 702 - AT - Income TaxPayment towards membership of OTC (Delhi stock exchange) - nature of expenditure - AR submitted that membership of OTC enables assessee to use its facilities and do not result in creation of asset of enduring nature so as to held expenditure as capital in nature - provision made for doubtful advance for membership - Held that:- Assessee in present facts of case has written off a sum of ₹ 20 Lacs, which is alleged to have been given to Delhi Stock Exchange, towards its membership, which was denied. As these were non-refundable in nature, Delhi stock exchange did not refund the said amount to assessee. Assessee before us has not established by way of documentary evidences regarding its dealing in commodities exchange/shares etc., for which it could have benefited from membership of Delhi stock exchange. Further reason for rejection of its membership by Delhi stock exchange is also not known. It is further observed that assessee has not taken any steps to recover the money from Delhi stock exchange and therefore under such circumstances we do not see necessary fulfilment of section 36(1)(vii) of the Act, in any manner whatsoever. We therefore do not find any reason to interfere with observations of Ld. CIT (A) and the same is upheld. Accordingly ground raised by assessee stands dismissed.
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