• While making the assessment, the AO made disallowance u/s 40(a)(ia) for non-deduction of tax on payment made to NSE for lease line charges, VSAT charges and transaction charges
• AO stated that the services rendered by the stock exchange are technical in nature and therefore section 194J is applicable
• In appeal, CIT (A) allowed the appeal of the assessee following the decision of the I.T.A.T Mumbai in the case of Kotak Securities Private Limited
• CIT (A) has rightly deleted the addition applying the decision of Kotak Securities Private Limited and Angel Broking observing that transaction fees paid to the stock exchange could not be said to be fees paid in consideration of stock exchange rendering any technical services to the assessee. Therefore, provisions of section 9(1)(vii) and section 40(a)(ia) are not applicable.