Please share your knowledge with regard to this?????

I think it is inadmissible expenses, let's see others view also

penalties are not allowed as deduction 

Not admissible

Penalties are of two types : 1) Penalty for breach of Law     2) penalty for not fulfilling contractual obligations

Type 1 penalties are not admissible under Income Tax Act, since they have been imposed for breach of a Law while Type 2 penalties are allowed under Income Tax.

Since in this case RBI has imposed penalty on another bank, it appears that it is in nature of Penalty for breach of law hence it is not admissible

NO.. not admissible..

Originally posted by : Nitin Singhal
	Penalties are of two types : 1) Penalty for breach of Law     2) penalty for not fulfilling contractual obligations   Type 1 penalties are not admissible under Income Tax Act, since they have been imposed for breach of a Law while Type 2 penalties are allowed under Income Tax.   Since in this case RBI has imposed penalty on another bank, it appears that it is in nature of Penalty for breach of law hence it is not admissible

AGREED

any expense which is  made for breach of any law is not allowed as deduction under I.T act

it is not admisible expense because any kid of penalties are not allowable in income tax.