Income tax
This query is : Resolved
04 May 2015
Penalty paid due to violation of traffic rules is allowed or disallowed under income tax act
Nikhil Kaushik
(Expert)
04 May 2015
all penalties paid on account of violation of any law should not be allowed...
05 May 2015
Penalty paid due to violation of traffic rules is in the nature of compensation. Therefore such kind of penalties is allowed u/s. 37(1).
However, penalties paid in the nature of punishment is not allowed.
However, penalties paid in the nature of punishment is not allowed.
Nikhil Kaushik
(Expert)
05 May 2015
kindly refer explantion to section 37(1)
"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."
"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."
Nikhil Kaushik
(Expert)
05 May 2015
you may refer the judgment in case of Kranti Road Transport (P.) Ltd. Versus Assistant Commissioner of Income-tax, Circle-2(1).
traffic violation penalties are not compensatory in nature.
traffic violation penalties are not compensatory in nature.
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
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Equity Share Sale and Purchase
- Whether output tax is taken credit by purchaser
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
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
