Case Law Details
DJS Stock and Shares Ltd. Vs DCIT (ITAT Mumbai)
In the instant case penalty charged levied by the SEBI are related to shortfall in the margin money and is not for infraction of any law. Accordingly the said payment cannot be considered as penalty for violation of any law falling within the ambit of proviso to section 37(1) of the Act. Accordingly, following the decision rendered by the Division Bench in the case of M/s. The Stock & Bond Trading Co. (supra), I hold that the said amount is allowable as deduction.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The assessee has filed this appeal challenging the order dated 22.2.2022 passed by learned CIT(A)-53, Mumbai and it relates to A.Y. 2017-18.
2. The solitary issue urged in this appeal relates to disallowance of Rs.3,69,661/-, being penalty levied upon the assessee by the Stock Exchange for maintaining short margins.
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