TMI Blog2005 (8) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Government and notcovered under the provisions of section 43B of the Income-tax Act. 2. The facts in this regard borne out from the orders of the lower authorities are that the assessee who is a Member of National Stock Exchange has debited a sum of ₹ 26,25,569 in assessment year 1997-98 and ₹ 10,95,853 in assessment year 1998-99 under the head SEBI turnover charges . The assessee has also given a note in its Schedule L on this issue stating that ₹ 26,25,569 debited to P L Account relating to SEBI turnover charges has not been paid by the entity because of the dispute with SEBI and Members of National Stock Exchange and this amount is shown in the current liability in the balance sheet. The treatment giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny amount collected by way of bills raised by the assessee has to be considered as part of a receipt and the revenue has to be recognized with the raising of the bills in case of mercantile system of accounting. Admittedly, the assessee maintained its accounts on mercantile basis and, therefore, the amount has accrued as income in the year in which bills has been raised. Therefore, the assessee is right in showing it as receipt in the trading account. With regard to applicability of section 43B in this case, the Assessing Officer observed that the SEBI is a Government regulatory body and has levied fees for all brokers based on turnover. The Assessing Officer further observed that any sum payable by the assessee by way of tax, duty, cess or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Board were also defined under this Act. The powers and function of the Board are enshrined in section 11 of the Act under Chapter IV according to which, Board is empowered to levy fees of the charges for carrying out the purposes of this section. The Board has also been conferred with the powers as vested in the Civil Court under the Code of Civil Procedure. The Board is also empowered to issue directions, conduct investigations and grant registration to stock brokers, sub-brokers, transfer agents etc. The Board is also empowered to impose penalties for certain defaults etc. Since the Board is a creation of an Act and is armed with all powers. The turnover charges paid to the SEBI cannot be called any other charges except the cess, duty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and to regulate the securities market by such measures as it think fit. The Board may issue the instructions to regulate the business in a Stock Exchange and the Securities Market. The Board has also armed with the same powers as are vested in Civil Court under Civil Procedure Code, 1908 while trying a suit in respect of certain matters. The Board is also conferred with the powers to issue directions and conduct investigations in certain matters and also to grant registration to a stock broker, sub-broker and share transfer agent etc. The Board is also empowered to levy penalty in case of default by any person who is required to do a particular act as per the instructions of the Board. The decisions of the Board are subject to an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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