ITAT affirms deduction for SEBI fee, recalculates capital loss with indexation, rejects Revenue's appeal

The ITAT upheld the Ld. CIT(A)'s decision to allow the deduction of the fee paid to SEBI, citing legal precedents and the appellant's obligation to pay SEBI. The ITAT also upheld the Ld. CIT(A)'s directive to recompute long term capital loss after considering indexation, resulting in a higher loss figure for the appellant. The ITAT dismissed the Revenue's appeal on both issues, affirming the Ld. CIT(A)'s orders.

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Issues:
1. Disallowance of fee paid to SEBI
2. Recomputation of long term capital loss after considering indexation

Issue 1: Disallowance of fee paid to SEBI:
The Revenue appealed against the Order of the Ld. Commissioner of Income Tax (Appeals) regarding the disallowance of a fee paid to SEBI. The Revenue argued that the issue was sub judice before the Supreme Court. The Ld. CIT(A) allowed the deduction of the fee, citing the appellant's obligation to pay SEBI, dismissal of the appeal by the Securities Appellate Tribunal, and subsequent payment during the relevant assessment year. The Ld. CIT(A) relied on the decision of the Delhi High Court in CIT vs. BLB Ltd. The ITAT upheld the Ld. CIT(A)'s decision, emphasizing the similarity of facts, the payment made during the year, and the legal precedents, ruling in favor of the appellant and dismissing the Revenue's appeal.

Issue 2: Recomputation of long term capital loss after considering indexation:
The second issue pertained to the determination of long term capital loss by the AO without allowing indexation of cost. The appellant contended that the loss after indexation amounted to a higher figure. The Ld. CIT(A) directed the AO to recompute the loss after considering indexation, a decision upheld by the ITAT. The ITAT concurred with the Ld. CIT(A)'s reasoning, acknowledging the correctness of the indexation calculation and ruling in favor of the appellant. Consequently, the ITAT dismissed the Revenue's appeal, upholding the Ld. CIT(A)'s order on both issues.

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