PMS fee not allowable while computing capital gain on Sale of shares

Mateen Pyarali Dholkia Vs Dy. CIT (ITAT Mumbai) The AO observed that the PMS and Profit sharing fees (hereinafter collectively called as ‘fees’) paid to portfolio manager was unrelated to any profit or loss under the head ‘Capital gains‘. There is no dispute on the fact that the assessee claimed long term capital gain as exempt, which was duly accepted. The A.O. did not allow deduction for fees of Rs. 17,95,185 claimed by the assessee against the short term capital gain, as it was, in his opinion, not related to the transactions resulting in to capital gain. It was argu...