Deductibility of settlement payments for securities law penalties and treatment of unexplained cash credits in share trading -- Tribunal upholds positions

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....Deductibility of expenditure for settlement of proceedings under securities law: Tribunal applied CBDT Notification No.38/2025 to hold that settlement payments or penalties relating to contraventions under specified laws are not allowable as business expenditure under the Income Tax Act from AY 202526; however, because the assessment year before the Tribunal is AY 201718 the departmental proposition met no interference and the ground failed. Unexplained cash credits under the deeming provision: Tribunal found the lender's financials show genuine sharetrading revenue and no proximate connection to an entry operator, so the addition under unexplained cash credits was deleted; revenue's appeal dismissed.....