TMI Blog2012 (5) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... embership card of the Bombay Stock Exchange. 3. We have heard the parties. The assessee company is engaged inter alia in the business of share broking, depositaries, mobilisation of deposits and marketing of Public issues (PI). The assessee is Member of the Bombay-stock Exchange having two Membership cards. The assessee has claimed depreciation @ 25% on both the Membership cards on their WDV being ₹ 8,34,506/- and ₹ 15,66,211/- respectively. The A.O. disallowed the depreciation on both the Membership cards. 4. Now, this issue stands covered in favour of the assessee by the decision of Hon ble Supreme Court in the case of Ongoing Shares vs. CIT 327 ITR 323. The Ld. D.R. also fairly conceded that the issue stands covered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly allow the claim of the bad debts and ground no.3 is allowed. 7. Ground no.4 5 are in respect of disallowance u/s.14A of ₹ 1,14,20,523/-. The A.O. made the disallowance u/s.14A in accordance with Rule 8D in respect of the expenditure incurred for earning the dividend income. Both the parties agreed that as assessment year involved is 2006-07 Rule 8D cannot be applied in view of the decision of the Hon ble jurisdictional High Court in the case of DCIT vs. Godrej and Boyce Mfg. Co. Ltd. 328 ITR 81 (Bom). At the same time the A.O. can decide the reasonable expenditure which may be incurred for earning the dividend income or any other exempt income. We, accordingly, restore the issue of disallowance to be made under sec. 14A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said issue is also covered by the decision of the jurisdictional High Court in the case of Otis Elevator Co. Ltd. (supra). We, therefore, delete the addition of ₹ 15 lakhs and allow ground no.6. 11. The next issue is the rate of depreciation in respect of UPS and this issue arises from ground no.7. 12. The A.O. has observed that the assessee has claimed 100% depreciation on UPS and batteries treating them as Automatic Voltage Controller. In the opinion of the A.O. as the assessee has claimed higher depreciation. The A.O. restricted the depreciation to 15% as against 80% claimed by the assessee. The assessee also contended that the UPS and batteries which are being utilised as Automatic Voltage Controller, which provide protec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rges paid to the Stock-exchange respectively, which were deleted by the Ld. CIT (A). 18. We have heard the parties. We find that so far as the transaction charges are concerned, said issue has been decided against the assessee in the assessee s own case by the Hon ble High Court of Bombay reported in CIT vs. Kotak Securities Ltd. 62 DTR (Bom) 339 and it is held that transaction charges are paid to the stock-exchange for rendering managerial services which constitute fees for technical services u/s.194J r.w. Expl.2 to sec.9(1)(vii) and the assessee was liable to deduct the tax at source before crediting the transactions charges to the stock-exchange. So far as the issue of VSAT charges are concerned, the same is covered in favour of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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