2023 (10) TMI 1053

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....NNAPURNA GUPTA, ACCOUNTANT MEMBER This appeal has been filed by the assessee against order passed by the ld.Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as "Ld.CIT(A)"] under section 250(6) of the Income Tax Act, 1961 ("the Act" for short) dated 13.12.2022 pertaining to the Asst. Year 2018-19. 2. In the appeal, the assessee has raise....

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.... : Rs. 1,59,058/- ii) Late payment & penalty charges : Rs. 30,92,199/- iii) Interest on margin trading facility : Rs. 15,71,902/-   Total : Rs. 48,23,159/- 4. The orders of the authorities below reveal, that the AO had made disallowance treating the aforesaid expenses as being penal in nature, not allowable under section 37(1) of the Act, in the absence of the assessee being able t....

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....acilities paid to brokers and late payment charges paid to brokers. Copy of the ledger accounts was also filed before us explaining the same. He therefore contended that in the light of all the records, the evidences/documents before the AO, there was no reason or the AO to reject the contentions of the assessee that these expenses were incurred wholly and exclusively for the purpose of business o....

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....ng an offence or which is prohibited by law, not allowed in terms of Explanation to section 37(1) of the Act; that we completely agree with the ld.counsel for the assessee that narration of these expenses, as noted by the AO/CIT(A) does not reveal any such nature of the expenses as far as interest on margin trading facility or TDS is concerned. And as for the late payment and penal charges also, t....