Interesting decision on tax exemption by hc

Tax queries 545 views 4 replies

Swati

Engineer

27 Points Joined August 2008

https://ibnlive.in.com/generalnewsfeed/news/hc-allows-mp-bizman-tax-benefit-for-ransom-paid-to-kidnappers/808271.html

If you are kidnapped while on a business trip and pay a ransom to your abductors, you can show the amount as "business expenditure" and get a tax exemption on it. This according to an August 23 Jabalpur high court order, which upheld the local tax tribunal’s decision to allow a Madhya GA_googleFillSlot("ht_story_top_lhs_200x200");Pradesh businessman to claim tax deduction on the ransom he paid his kidnappers.

Sukhnandan Jain, director of a bidi sales and manufacturing company in Sagar district, was kidnapped by the notorious Raju Bhatnagar gang on August 5, 1987, while on a trip to buy tendu leaves. After the police failed to rescue him, his family paid a R5.5-lakh ransom after which he was released on August 27 that year.

Where does this leave salaried person?

What if a salaried person gets abducted and his family pays ransom?

Is it allowed to claim tax dedcution ?

Replies (4)

Mihir

Wealth Manager

5293 Points Joined December 2008

Thanks.

Smart chap, for trying to use IT act, to recover the loss.

IT provisions are situational, and as situations get complicated, so will the provisions. Loopholes will follow provisions and vice versa.

Guest

Its. Really interesting decision...Thanks for sharing.

I wonder about the other side of story, any exemptions for kidnapper..
and regd salaried persons, when such case appears infront of court, I hope, it will imply samekind of law then too

Shah Tarun

Student

800 Points Joined May 2008

People's mentality has made each law so complicated,Before blaming government we should know that there is lack of civilisation in our society and that's is the biggest problem. . Anyways good job Swati.It is a good sharing however don.t ponder on it much. .