Pune ITAT – Portfolio management (PMS) fees deductible in computing capital gains ; Shares PMS transaction gains are Short Term Capital Gain and not business profits

Pune Income Tax Appellate Tribunal (ITAT) in the case of the KRA Holding & Trading (P) Ltd. (ITA Nos. 500,1320/ PN/08, 434/PN/09) and ARA Trading & Investments (P) Ltd. (ITA Nos. 499, 1321,1322/PN/08,806/PN09) on the issue of deductibility of portfolio management fees in computing ‘capital gains’ under the Indian Tax Laws (ITL) held that such fees was directly connected to the acquisition and sale of securities and was incurred in the normal course of the investment activity. It was held that the payments wou

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