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| The Tax Publishers2021 TaxPub(DT) 6298 (Hyd-Trib) INCOME TAX ACT, 1961
Section 37(1)
Sales-tax penalty was raised by the Commercial Taxes Department for under declared tax and not for delay in payment of sales tax and, therefore, penalty paid for violation of any law, was not allowable under section 37 in view of explanation thereto.
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Business expenditure - Applicability of Expln. to section 37(1) - Sales-tax penalty for under declared tax -
Assessee claimed deduction of sales-tax penalty which was raised by Commercial Taxes Department for under-declared tax. AO disallowed deduction in view of Explanation to section 37(1). Held: Penalty was raised by the Commercial Taxes Department for under declared tax and not for delay in payment of sales tax and, therefore, penalty paid for violation of any law, was not allowable under section 37.
Relied:CIT v. Bharat Steel Tubes Ltd. (1997) 226 ITR 750 (Del) : 1997 TaxPub(DT) 113 (Del-HC).
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 143(3)
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