Bribe claiming as deduction u/s 37

This query is : Resolved

suhas v athreya (Querist)
Follow

24 March 2012 Why Cannot you Claim Bribe Paid as Deduction under Sec 37 of Income Tax Act 1961?

Justify your answers with a reference to necessary statues.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

24 March 2012 This is because of Explanation 1 to Section 37 which provides as under:

For the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure

Since giving a bribe is prohibited by law, it is not allowed as deduction.

Message likes : 1 times

suhas v athreya

suhas v athreya (Querist)
Follow

04 April 2012 Thank you for the reply..

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

04 April 2012 You are welcome.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Pavithra Doss

vinal

CA. Urmila Mahalwal

zafar chandwale

Suranjan Das

Subscribe Now

Bribe claiming as deduction u/s 37

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA