Portfolio management services fees not allowed as deductions against capital gains

Brief:- Mumbai Income-tax Appellate Tribunal (“the Tribunal”) in the case of Devendra Motilal Kothari Vs. DCIT [2011] 50 DTR 369 (Mum), has held that fees for portfolio management services (“PMS”) are not inextricably linked with the particular instance of purchase and sale of shares and hence cannot be allowed as a deduction while computing capital gains. Facts :-The assessee had entered into an investment management agreement with four parties and had incurred portfolio management fees. The PMS fees were claimed by the assessee as part of the cost of the acquisition o...