2024 (10) TMI 703

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der passed by the Deputy Director of Income Tax, Centralised Processing Centre, Bangalore (the learned AO) under section 143 (1) of the income tax Act 1961 (the Act) dated 24/8/2022 was dismissed. 2. Assessee is aggrieved and is in appeal before us raising following grounds of appeal: "1. The learned ADDL/JCTT (A) erred in confirming the adjustment of Rs. 112,984/- u/s 143(1)(a)(iv) being penalty or fine as under: Sr. No. Particulars Amount 1. BSE-Adverse observation in IAR 16,000 2. BSE-6A-7A Penalties to ICCL 12,295 3. BSE-Penal Charges for late submission of Half Yearly Net Worth 12,700 4. BSE-TM-Penalty for Short or Non-collection of Client Margin of Eq. Segment 51,152 5. NSE-Adverse observation in IAR Sept. 2019 6,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eived by the assessee wherein the addition of Rs. 1,12,984/- under section 143(1)(a)(iv) of the Act was found to be inconsistency in the order and the return. Assessee disclosed it to be penalty. In response to that notice under section 143(1) of the Act assessee could not upload any reply because of the reason that the notice was not reflected on portal due to glitches and finally time for submission of response was over. Ultimately, the central processing Centre finally made the addition by disallowing Rs. 1,12,984/- by passing an intimation under section 143(1) dated 24/8/2022. 4. Against the same, the assessee preferred an appeal before the learned CIT - A and made the detailed submissions and stated that the above payment made by the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....-1 - 3 of Section 37(1) of the Act. 8. We have carefully considered the rival contentions and perused the orders of the learned lower authorities. The assessee has submitted a detailed chart at Page No. A & B of the paper book wherein the nature of the penalties have been explained by the assessee. The total penalty of Rs. 1,12,984/- was levied, these penalties is with respect to the delayed intimation of institutional trade to custodian and short collection of margins from clients. Though assessee in tax audit report in Form No 3 CD has shown it to be penalty but now it is contested that same is not disallowable expenses u/s 37 (1) of the Act. We are concerned here that whether such payment is disallowable or not. 9. We find that this is....