https://www.taxtmi.com/caselaws?id=469948 Penalty paid to a stock exchange for short margin maintenance was treated as a business-related disciplinary charge, not a penalty for infraction of law. The Tribunal applied the view that where the payment arises from regular trading operations and exchange bye-laws, it does not fall within the mischief of the proviso to section 37(1) of the Income-tax Act, 1961. The disallowance was therefore unsustainable, and the amount remained allowable as a deduction. en-us Fri, 22 Jul 2022 00:00:00 +0530 Fri, 10 Jul 2026 10:23:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469948 Penalty paid to a stock exchange for short margin maintenance was treated as a business-related disciplinary charge, not a penalty for infraction of law. The Tribunal applied the view that where the payment arises from regular trading operations and exchange bye-laws, it does not fall within the mischief of the proviso to section 37(1) of the Income-tax Act, 1961. The disallowance was therefore unsustainable, and the amount remained allowable as a deduction. Case-Laws Income Tax Fri, 22 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469948