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2014 (4) TMI 661 - AT - Income TaxPenalty u/s 271(1)(c) of the Act – Deduction claim for fee paid to portfolio manager - No satisfactory explanation provided – Held that:- The assessee has furnished an explanation to the effect that he had claimed the deduction of Portfolio Management fee against the Short term capital gain on the basis of decisions rendered by the Tribunal - the decision in ITO Vs. Radha Birju Patel [2010 (11) TMI 145 - ITAT MUMBAI] followed - the Portfolio Management charges are deductible as expenses - the addition or disallowances made in the assessment proceedings would not automatically give rise to penalty and hence in the penalty proceedings, the entire matter has to be looked into afresh, though the finding given in the assessment proceedings can be taken help of - the AO was not justified in levying penalty u/s 271(1)(c) of the Act on the disallowance of Portfolio Management Charges – the order of the CIT(A) set aside the AO is directed to delete the penalty u/s 271(1)(c) of the Act – Decided in favour of Assessee.
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