{"id":3950,"date":"2011-11-25T09:07:19","date_gmt":"2011-11-25T09:07:19","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=3950"},"modified":"2011-11-25T09:07:19","modified_gmt":"2011-11-25T09:07:19","slug":"cit-vs-the-stock-and-bond-trading-company-bombay-high-court-penalty-fine-for-violation-of-procedural-law-not-hit-by-explanation-to-s-371","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/cit-vs-the-stock-and-bond-trading-company-bombay-high-court-penalty-fine-for-violation-of-procedural-law-not-hit-by-explanation-to-s-371\/","title":{"rendered":"CIT vs. The Stock and Bond Trading Company (Bombay High Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=556\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=556&varname2=stock_bond_penalty_infringment_law.pdf'; }, 100)\" ><strong>Click here to download the judgement (stock_bond_penalty_infringment_law.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nPenalty\/ Fine for violation of procedural law not hit by Explanation to s. 37(1)<br \/>\n<\/strong><\/p>\n<p>The assessee paid <em>penalty\/fine<\/em> to BSE\/NSE for <em>infringement of procedural rules<\/em> such as failure to maintain margins, trading beyond exposure limits, late submission of margin certificates, delay in making payment &#038; deliveries  etc. The AO disallowed the claim for deduction on the ground that there was an <em>infringement of statutory law<\/em> laid down by SEBI and the <em>Explanation to s. 37(1)<\/em> was attracted. This was reversed by the Tribunal on the ground that the penalty was for violation of <em>procedural regulations and compensatory in nature<\/em> and there was no infringement of law. On appeal by the department, HELD dismissing the appeal:<\/p>\n<blockquote><p>\nAs the payments made by the assessee to the Stock Exchange for <strong>violation of their regulation was not an account of an offence or which is prohibited by law<\/strong>, the invocation of the Explanation to s. 37 of the Act was not justified. <\/p><\/blockquote>\n<div class=\"journal2\">\nSee also <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/cit-vs-ms-khemchand-motilal-jain-madhya-pradesh-high-court\/\">CIT vs. M\/s Khemchand Motilal Jain<\/a><\/strong> (MP)\n<\/div>\n<p><!--\n\n\n\n\n\n\/\/--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the payments made by the assessee to the Stock Exchange for <strong>violation of their regulation was not an account of an offence or which is prohibited by law<\/strong>, the invocation of the Explanation to s. 37 of the Act was not justified<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/cit-vs-the-stock-and-bond-trading-company-bombay-high-court-penalty-fine-for-violation-of-procedural-law-not-hit-by-explanation-to-s-371\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-3950","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/3950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=3950"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/3950\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=3950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=3950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=3950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}