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53. (2026) 189 taxmann.com 433 (Mum Trib)
Ameeta Jagdish Thackersey v. Income-tax Officer
A.Y.: 2011-12 Date of Order : 10.08.2026
Section: 48
Since divergent Tribunal views existed on the allowability of Portfolio Management Services (PMS) fees under section 48, the interpretation favourable to the assessee was to be adopted and accordingly PMS charges were allowable as a deduction in computing capital gains.
FACTS
The assessee filed a return for A.Y. 2011-12 declaring total income of about Rs. 72.26 lakhs from salary, short-term capital gains and other sources. While computing capital gains, she claimed a deduction of PMS fees/charges of about Rs. 8.42 lakhs paid to her portfolio manager.
In assessment under section 143(3), the AO disallowed the PMS fees, holding that such charges were not expenditure incurred wholly and exclusively in connection with the transfer of a capital asset as required by section 48.
On appeal, the CIT(A) held that the fees, paid for purchase and sale of securities and allied activities, were not directly relatable to the cost
