Case Law Details
ACIT Vs Apurva Mahesh Shah (ITAT Mumbai)
Portfolio Management Fees and Performance Linked Fees were paid by the assessee to his portfolio manager i.e. M/s Enam Assets Management Company (P) Ltd. towards service charges for making investments of his funds and managing the portfolio of securities, therefore, the same not being an expenditure incurred wholly and exclusively in connection with the transfer of the shares out of which STCG had arisen to the assessee, had thus rightly been held by the A.O as not allowable as a deduction under Sec. 48 of the Act. We thus, in terms of our aforesaid observations set aside the order of the CIT(A) and uphold the disallowance of Rs. 1,13,12,737/- made by the A.O in respect of the Portfolio Management Fees and Performance Linked Fees which was claimed by the assessee as a deduction under Sec. 48 while computing the STCG on transfer of shares.
FULL TEXT OF THE ITAT JUDGMENT
The present appeal filed by the revenue is directed against the order passed by the CIT(A)-27, Mumbai, dated. 15.07.2011, which in itself arises from the order passed by the A.O under Sec. 143(3) of the Income Tax Act, 1961 (for short „Act‟), dated. 27.11.2009. The revenue has assailed the order of the CIT(A) by raising the following grounds of appeal before us :
“1. The Ld. CIT(A) erred in directing the A.O to allow the deduction Rs. 1,13,12,737/- on account of portfolio management (PMS) fees allocated towards the Short term capital gains on sale of shares.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
