Case Law Details
Sanjaykumar Sarabhai Patel Vs ITO (ITAT Ahmedabad)
Conclusion: Transaction charges paid to National Multi Commodity Exchange of India (NMCE) was clearly in the course of commodity business and thus, assessee was entitled to claim such expenditure as ‘business expenditure’.
Held: It was held by Tribunal that the claim of assessee that transaction charges paid to National Multi Commodity Exchange of India (NMCE) required to be allowed as ordinary business expenditure in the course of commodity trading carried good deal of force. The expense incurred was clearly in the course of commodity business and thus, assessee was entitled to claim such expenditure as ‘business expenditure’.
FULL TEXT OF THE ITAT JUDGMENT
The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals), Gandhinagar (‘CIT(A)’ in short), dated 18.01.2016 arising in the assessment order dated 26.03.2013 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning assessment year 2010-11.
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