2022 (7) TMI 1635

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....peal challenging the order dated 22.2.2022 passed by learned CIT(A)-53, Mumbai and it relates to A.Y. 2017-18. 2. The solitary issue urged in this appeal relates to disallowance of Rs.3,69,661/-, being penalty levied upon the assessee by the Stock Exchange for maintaining short margins. 3. The assessee company is engaged in the business of the share broking and trading in shares and securiti....

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....n the business by the members of stock exchange. The Ld A.R submitted that the said penalty cannot be equated with the penalty levied for infraction of any law and hence proviso to section 37(1) of the Act would not apply to the above said payment. Accordingly he submitted that learned CIT(A) was not justified in confirming the disallowance made by the Assessing Officer. The Learned AR submitted t....

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...."5. Ground No. 8 to 12 raised by the Revenue in this appeal involve a common issue relating to disallowance of Rs. 2,73,693/- made by the A.O. on account of penalty imposed by the stock exchange which stands deleted by the ld. CIT(A). 6. We have heard the arguments of both the sides and also perused the relevant material on record. It is observed that a similar issue had come up for consi....

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....of business and not for infraction of law as envisaged in proviso to section 37(1). In our opinion, these decisions of the Tribunal are squarely applicable to the issue under consideration and respectfully following the same, we uphold the impugned order of the ld. CIT(A) deleting the disallowance made by the A.O. on account of penalty paid by the assessee to BSE on violation of the bye laws of th....