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TMI Blog2024 (10) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... also the decision of Stock and bond trading company [ 2011 (10) TMI 172 - BOMBAY HIGH COURT] wherein it has been held that the payments made by the assessee to the stock exchange for violation of the regulation are not on account of an offence or which is prohibited by law and therefore invocation of explanation to Section 37 of the Income Tax Act is not justified. We have also considered the nature of penalty which is also levied for the violation of rules and regulation as well as by laws of the Bombay Stock Exchange and National Stock Exchange. Therefore, the issue is decided in favour of the assessee by directing the learned Assessing Officer to delete the disallowance - Accordingly Ground Nos. 1 and 2 of the appeal of the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 1,12,984/- as above was not indicated in the audit report for disallowance and hence the adjustment of ₹ 112,984/- may be delete. 2. The learned ADDL/JCIT (A) erred in confirming the adjustment of ₹ 112,984/- 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 6,000 6. NSE-TM-Penalty for Short or Non- Collection of Client Margin of Eq. Segment 137 7. NSE-Late/Non- submission of Half Yearly Net Worth 14,700 TOTAL 1,12,984 wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed. 5. Assessee aggrieved with the above is in appeal before us. 6. The learned Authorised Representative submitted a detailed Paper Book containing 106 pages covering the tax audit report and submission made before the learned CIT A on 2 occasions. Further a paper book containing 106 pages of judicial precedents were also submitted wherein it was contested that the above payment of assessee cannot be said to be a penalty. Several Circulars of National Stock Exchange, Bombay Stock Exchange and Securities and Board of India were also pressed into service. 7. The learned Departmental Representative (DR) vehemently supported the order of the learned CIT A and submitted that above payment of penalty made by the assessee has been disclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stock and bond trading company in ITA No. 4117 of 2010 dated 14th October, 2011 wherein it has been held that the payments made by the assessee to the stock exchange for violation of the regulation are not on account of an offence or which is prohibited by law and therefore invocation of explanation to Section 37 of the Income Tax Act is not justified. We have also considered the nature of penalty of ₹ 1,12,984/- which is also levied for the violation of rules and regulation as well as by laws of the Bombay Stock Exchange and National Stock Exchange. Therefore, the issue is decided in favour of the assessee by directing the learned Assessing Officer to delete the disallowance of ₹ 1,12,984/ . Accordingly Ground Nos. 1 and 2 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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