Expense allowable /disallowable

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 July 2015 Dear Sir,

Amount paid towards penalty for Excess load to state electrical board is allowable Business expenditure or not?

01 July 2015 It is fully allowed Business Expenditure.

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 July 2015 Hi Sandeep

Is it possible for you to provide the judgement for the above query.

Thanks

01 July 2015 Penalty, fines, etc paid by the assessee to State Electricity Board for violating power regulation (drawing extra load in peak hours) was allowable deduction u/s. 37(1) of the Act. The Court further observed that if penalty is not for deliberate violation of law the same should be allowed as deduction. Refer Hero Cycles Ltd. 17 DTR 281.


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