TMI Blog2004 (10) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer by invoking the provisions of section 14A of the Income-tax Act, and addition of ₹ 3,500 made by Assessing Officer in respect of additional fee paid to Registrar of Companies. 2. The assessee is dealing in trading of shares and declared income of ₹ 20,620. During the assessment proceedings the Assessing Officer noted that assessee has shown dividend income of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is doing the business of trading in shares. The assessee has shown purchase of shares at ₹ 20,11,49,000 and made sales of ₹ 20,79,58,000 and odd, which resulted in a profit of ₹ 3,40,180. After claiming administrative expenses and others, the assessee filed the return at an income of ₹ 20,620. The assessee has not made any investment in shares for the purpose of earnin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 3,500, I found that this amount was paid as additional fee asked by Registrar of Companies. Therefore, the additional fee cannot partake the character of penalty. Fees or additional fees paid to R.O.C. is allowable expenses under section 37 of the Act. Therefore, I delete this addition of ₹ 3,500 also. 6. In the result, the appeal of the assessee is allowed. - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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