The assessee, engaged in the business of shares and securities, claimed administration expenses,...

The assessee, engaged in the business of shares and securities, claimed administration expenses, including Portfolio Management Service (PMS) expenses, against capital gains. The Assessing Officer (AO) disallowed these expenses as excessive and not genuine. The key points are: The Income Tax Appellate Tribunal (ITAT) allowed the PMS expenses, considering the nature of the assessee's business and relying on precedents. However, general administrative expenses like salaries, depreciation, etc., were disallowed under the head 'Capital Gains' as per Section 48 of the Income Tax Act. These expenses can only be claimed against business income or adjusted u/s 71 if there is no business income. Regarding the treatment of share transactions as busin..... .....

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