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2018 (1) TMI 731 - AT - Income TaxTDS u/s 194H - disallowance of Sub-brokerage payments to sub-brokers on the transactions related to shares and securities - Held that:- On same identical facts in the case of S.J. Investment Pvt. Limited [2011 (2) TMI 1427 - ITAT MUMBAI] the coordinate ITAT Bench Mumbai held that the sub- brokerge paid in connection with the services rendered in the course of business of buying and selling of units of mutual fund or in relation to transactions pertaining to mutual fund is not covered by provisions of tax at source in view of the explanation (i) to section 194H of the Act. We note that there is no material to even suggest that the commission had been paid in connection with increasing the assessee volume of transactions or for doing any other activity. Therefore we hold that commission/brokerage of ₹ 10,67,725/- is not liable for deduction of tax at source (TDS). - Decided in favour of assessee Addition u/s 14A r.w.r 8D in respect of shares held as stock by the assessee company - Held that:- In REI Agro Ltd.(2013 (9) TMI 156 - ITAT KOLKATA) this Tribunal held that only investments which has given rise to the exempted income should be taken into consideration while computing u/s 8D(2)(ii) & 8D(2)(iii) of the Rules. The AO is directed accordingly to compute the disallowance under section 14A read with Rule 8D.
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