allowed or not
This query is : Resolved
03 December 2009
A pharma. company has made payment of :
200000.00
50000.00 (interest)
due to govt. order, since pharma co. can not sell the medicines above govt. specified M.R.P.Hence whether this will be cosidered as EXPENDITURE INCURRED FOR PURPOSE WHICH IS OFFENCE OR PROHIBITED BY ANY LAW.
please tell me whether this 2500000.00 is allowed U/S 37 of income tax or not.
If any case law is there please tell me.
Thanks.
200000.00
50000.00 (interest)
due to govt. order, since pharma co. can not sell the medicines above govt. specified M.R.P.Hence whether this will be cosidered as EXPENDITURE INCURRED FOR PURPOSE WHICH IS OFFENCE OR PROHIBITED BY ANY LAW.
please tell me whether this 2500000.00 is allowed U/S 37 of income tax or not.
If any case law is there please tell me.
Thanks.
03 December 2009
Any payment in the nature of penalty is not allowable as deduction u/s 37. In my opinion it is a sort of penalty for not meeting requirement. Hence it is not allowable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Can partnership firm show income under 44ad
- Regarding ITR filing with more value than showing in AIS/TIS
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
