Stock Exchange Margin Penalties Fully Deductible, ITAT Allows ₹1.22 Cr Claim

Indiabulls Securities Limited Vs DCIT (ITAT Delhi) Margin Deficiency Fee Allowed as Deduction -Explanation to Section 37(1) Not Attracted; ITAT Rules Margin Shortfall Payments Are Business Deductions; Regulatory Margin Fees Not Penal: ITAT Allows Deduction Under Section 37(1) Delhi Tribunal allowed the appeal, holding that charges levied by the Stock Exchange for margin shortfall are not penal in nature & hence allowable as business expenditure u/s 37(1). Assessee had claimed ₹1.22 crore paid to the Stock Exchange for shortfall in margin money. CPC, Bengaluru, disallowed it while process...