Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

May 2024

Management fee paid is allowable as deduction while computing capital gains.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 4 mins

9 Krishnamurthy Thiagarajan v. ACIT (Mumbai)

ITA No. 1651/Mum./2013

A.Y.: 2008-09

Date of Order : 20th February, 2024

S. 48

Management fee paid is allowable as deduction while computing capital gains.

FACTS

The assessee, during the year under consideration, returned short term capital gain of ₹10,04,322. While computing short term capital gain, the assessee had deducted ₹1,71,028 paid to BNP Paribas Investment Services India Pvt. Ltd. as management fees for sale of securities. There was no dispute either about payment by the assessee of management fee or that management fee paid was inextricably linked to earning of short term capital gain. The AO disallowed the claim of deduction of management fees only for the reason that the same is not an allowable deduction under secti

Read More
Download PDF

You May Also Like

Proviso to section 2(15) will not apply to a charity if the profit derived from the services rendered in furtherance of the object of general public utility is very meagre

Penalty under section 271F cannot be levied if estimated total income was less than maximum amount not chargeable to tax and assessee was not required to file return even pursuant to the provisos to section 139(1) though assessed income may have been greater than maximum amount not chargeable to tax. The basis of determination of income in the assessment order cannot be said to be the basis for filing of return of income under Section 139(1) of the Act.