TMI Blog2017 (10) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... nge and cannot be termed as charges for providing any professional or technical service. We are broadly in agreement with the view of the Tribunal. The Stock Exchange cannot be termed as providing professional or technical services. This question is therefore not required to be considered. Disallowance of lease line charge paid u/s.40(a)(ia) - Held that:- This issue has been decided by the Supreme Court in case of Commissioner of Income Tax vs. Kotak Securities Ltd. reported in [2016 (3) TMI 1026 - SUPREME COURT] in which held that the brokers make payment to the stock exchange for the facilities of faceless screen based transactions made available at the stock exchange which was compulsory for the brokers to use. In the opinion of the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d following additional questions: [ 3] Whether the Appellate Tribunal has substantial erred in deleting the disallowance u/s.40(a)(ia) for short deduction of Tax on payment made to NSE of transaction charges ? [ 4] Whether the Appellate Tribunal has substantially erred in deleting the disallowance of lease line charge paid u/s.40(a)(ia) of the Act? [ 5] Whether the Appellate Tribunal has substantially erred in deleting the disallowance of charges paid to NSDL/CDSL u/s.40(a)(ia) of Rs./32,84,607/ ? 3. Regarding question No.3, the issue pertains to appropriate deduction of tax at source by the assessee while making payment to National Stock Exchange in the nature of transfer charges. The Tribunal while reversing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exchange which was compulsory for the brokers to use. In the opinion of the Supreme Court, this was not a payment of fee for technical service rendered by the stock exchange inviting deduction at source under section 194J of the Act. This being the position, second question is not admitted. 5. This question is also therefore not considered. 6. With respect to question no.5, the issue pertains to the deduction of tax for payments of demat charges and other charges levied by NSDL and CDSL like in the earlier question, the Tribunal was of the opinion that such charges were in the nature of recovery of cost or expenses at large and not for providing any professional or technical service. To this extent, we are concur with the view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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