TMI Blog2010 (2) TMI 1179X X X X Extracts X X X X X X X X Extracts X X X X ..... business of trading in shares and stock broking. It filed return declaring the total income of ₹ 38,85,380/-. However, the assessment was completed at an income of ₹ 38,67,310/- including the disallowance of depreciation on BSE Card ₹ 18,28,313/- and disallowance of interest of ₹ 5,85,194/- being payment of interest on arrears of SEBI fees treated as prior period expenses, vide order dated 19.12.2007 passed u/s 143(3) of the Income tax act, 1961 (the Act). On appeal, the Learned CIT (A) while upholding the disallowance of depreciation on BSE Card, deleted the disallowance of interest on arrears of SEBI fees and accordingly partly allowed the appeal. 3. Being aggrieved by the order of Learned CIT (A), the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nover tax based on their annual turnover as a registration fee. The same were disputed by the brokers. The Board therefore appointed an expert committee which submitted its report in December, 1992. The committee observed that the turnover was a fair basis for determination of registration fee and the incidence of fees prescribed by the Board was reasonable. The matter was taken by the stock brokers to the court and finally the Supreme Court vide its judgement dated 1.2.2001 upheld the regulations and power of SEBI to levy fees on the basis of turnover. In the meantime on 16.12.1998, the SEBI (Broker and Sub-broker) regulations, 1992 was amended and an interest @ 15% p.a. was levied in respect of any delay / failure of payment of registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laxmi Sugar Mills Co vs CIT (1980) 123 ITR 429 (SC) while observing that the interest on SEBI fee partakes the character of SEBI fees itself and is thus allowable on the basis of actual payment u/s 43B, deleted the disallowance made by the Assessing Officer. 9. At the time of hearing, the Learned Departmental Representative supports the order of the Assessing Officer. 10. On the other hand, the Learned Counsel for the assessee while relying on the order of Learned CIT (A) also relied on the decisions in (i) Shree Pipes vs Dy CIT (Asstt) (2007) 289 ITR 154 (Raj) and (ii) Dy CIT (Assessment) vs Arvind Mills Ltd (2009) 314 ITR 251 (Guj) to contend that interest is allowable on actual payment u/s 43B of the Act. He further submits that si ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
