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2011 (12) TMI 622 - AT - Income TaxDisallowance u/s 40(a)(ia) - expenditure to ISE, which is the holding company of the assessee - Held that:- The amount in question is only reimbursement of the actual expenses and there is no element of any margin or profit.- Decided in favour of assessee. Penalty for violation of bye laws of Stock Exchange - Held that:- As decided in case of Angle Capital & Debit Market Ltd [2014 (5) TMI 584 - BOMBAY HIGH COURT] the amount paid as penalty was on account of irregularities committed by the assessee’s clients. Such payments were not on account of any infraction of law and hence allowable as business expenditure. In such a case the explanation to section 37a would not apply. Accordingly, when the payment made on violation of bye-laws cannot said to be payment of any infraction of law and cannot be disallowed.
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