Penalty paid to Stock Exchange allowable as regular business expenditure

ACIT Vs M/s Arihant Capital Markets Ltd. (ITAT Indore) The assessee paid penalty of Rs.1,62,098/-levied by Stock Exchange for procedural defaults such a delay in submission of return, etc. but nowhere it has been mentioned that it is for infringement of any law. The learned Assessing Officer disallowed this expenditure. However, the learned Commissioner of Income Tax (Appeals) deleted the disallowance. From a perusal of the finding of the learned Commissioner of Income Tax (Appeals) as well as going through the submissions given by the assessee in the light of the judgment of the Hon’ble...