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2018 (7) TMI 586 - AT - Income TaxAddition on account of revenue expenditure u/s 37(1) - expenditure on account of consent fee charged by the Security Exchange Board of India [SDEBI] - CIT-A held it as allowable as legitimate revenue expenditure - Held that:- Consent fee paid by the assessee was for non compliance of certain bye-laws/guidelines of SEBI. The fact of payment of consent fee cannot be treated as violation of statutory law. The charges levied by SEBI were in the ordinary course of business of the assessee and it cannot be construed that the payments were made in violation or infringement of any central or state laws. The consent fee paid cannot be equated to a penalty which must necessarily be a punishment for infraction of a law or a regulation having statutory force. The fee is paid for the purpose of business to settle a dispute with the regulator SEBI and to be able to conduct its business without interruption - no infirmity in the findings of the CIT(A) - decided against revenue Allowance of long term capital loss - Loss was on account of liquidation of its foreign subsidiary company - Held that:- Findings of the AO given in A.Y 2005-06 clearly shows that it was during the year under consideration the assessee could make final realisation and, therefore, the difference of actual investments made in the foreign subsidiary company and actual amount realised materialised during the year under consideration and, therefore, the claim of long term capital loss is definitely allowable during the year under consideration. No reason to interfere with the findings of the CIT(A) - Decided against revenue
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