https://www.taxtmi.com/caselaws?id=784153 The dominant issue was whether the amount paid to a stock exchange for shortfall in margin money is disallowable under s. 37 as a "penalty." Relying on the ratio of the Bom HC that such payments arising from margin requirements are not penalties for an offence or prohibited act but are incidental to the business of share trading, the Tribunal held the expenditure to be allowable under s. 37. Consequently, the disallowance sustained by the CIT(A) (affirming the CPC adjustment) was set aside and the assessee's grounds were allowed. en-us Fri, 24 Oct 2025 00:00:00 +0530 Tue, 30 Dec 2025 09:27:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784153 The dominant issue was whether the amount paid to a stock exchange for shortfall in margin money is disallowable under s. 37 as a "penalty." Relying on the ratio of the Bom HC that such payments arising from margin requirements are not penalties for an offence or prohibited act but are incidental to the business of share trading, the Tribunal held the expenditure to be allowable under s. 37. Consequently, the disallowance sustained by the CIT(A) (affirming the CPC adjustment) was set aside and the assessee's grounds were allowed. Case-Laws Income Tax Fri, 24 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784153