Case Law Details
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 High Court of Bombay in the case of CIT vs The Stock & Bond Trading Company ITA No. 4117 of 2010 , we are of the considered view that the assessee made no offence prohibited by law which can be contemplated to be covered under Explanation to section 37 of the Act and, therefore, the payment of penalty made by the assessee to the Stock Exchange is a regular business expenditure and the impugned disallowance has rightly been deleted by the learned Commissioner of Income Tax (Appeals). We uphold the same.
FULL TEXT OF THE ITAT JUDGMENT
The revenue has filed the appeal whereas the assessee has filed the cross objection relating to the assessment year 2013-14 against the order of the learned Commissioner of Income Tax (Appeals)-I, Indore, dated 28.2.2017 arising out of the order u/s 143(3) of the Income Tax Act dated 15.3.2016 framed by the DCIT 1(1), Indore.
2. In its appeal, the revenue has taken the following grounds of appeal :-
Please become a Premium member. If you are already a Premium member, login here to access the full content.
