Case Law Details
DCIT Vs Aditya Birla Money Mart Limited (ITAT Mumbai)
ITAT Mumbai held that loss of clients incurred under Options Maxima Scheme claimed by the assessee (being an agent) in its return is not allowable.
Facts-
The Revenue challenged the action of the CIT(A) in deleting the disallowance of the assessee’s claim of exceptional losses on account of certain trades of Rs.95,68,91,785/-. Notably, the assessee company was acting as an authorised person and has entered into a business partner agreement with ABML on 23/08/2010 which interalia required the assessee bank to make customers or essential customers aware of the products and the services of ABML from time to time and share details of all such customers who have evinced interest in availing such products and services.
The assessee contended that as part of the business agreement, it had referred to its existing customers as clients for the options maxima scheme offered by ABML. It was contended by the assessee that these clients continued to be serviced by the assessee as per their investment needs and objectivity including advisory on various third-party financial products and services on securities and securities-related instruments etc.,
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