Income tax
This query is : Open
Nimisha EP
(Querist)
11 April 2016
Whether penalty paid for service tax is disallowed under section 37 if not why?
KAVIRAJA ADDANGADI
(Expert)
11 April 2016
Penalty paid under 37(1) (iii) and (iv) if payment of expenses is offence or prohibited.
Refer Aruna Mills Ltd vs CIT[1957] clear. Interest, late fees / additional fees paid in Income tax, ROC and Tds not deductible by virtue of sec 37(1)
Refer Aruna Mills Ltd vs CIT[1957] clear. Interest, late fees / additional fees paid in Income tax, ROC and Tds not deductible by virtue of sec 37(1)
11 April 2016
Penalty is for violation of Law. So that it cannot be considered as business expense.
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