Accounting Entry for Fine and Penalty

If a Manufacturing Co. deduct fine against Party for Safety Expense for Violation of Safety Rules then what will be the accounting treatment ? As we enter Expenses entry as follows :

Safety Expense A/c ......................... Dr.

          To Party A/c

but during deduction of amount for Violation of Safety Rules entry will be as follows or not ?

Party A/c ............................................ Dr.

     To Misc . Income A/c

Is there any Taxation effect occur in future  ?

Please suggest.