It can put in jail the person who takes and the person who gives. No, question of allowance.

Bribe is an offence against law...whether paid for business purpose or not...it is disallowed in sec 37(1). The word 'bribe' is giving the essence of illegal to the expenditure..if in some case it is merged with other expenses and not get seperated then it is a different thing that one get its deduction if it remein undetected but if expressely said that amount has been paid as bribe, do not even think of deduction from profit.

Dear Robin,

            Can u please guide me the act which says that giving Bribe to a non-government official is an offence. Payment of bribe to a PUBLIC SERVANT IS AN OFFENCE AS PER THE PREVENTION OF CORRUPTION ACT,1988. Please spare your valuable time to go through the act. The act does not say anything about Non-Publc Servants. When the act is silent, we cannot assume that it also applies to private company officials. Payment of bribe to non-government officicals is not an offence under any Indian Laws. Then, how can an interpretation be made that it is to be disallowed.

Bribe is Disallowed Expenditure Under Section 37(1)

There is No Such Concept of Paid to Govt Employee or Non Goverment Employee

Dear Mr.Ayush,

            Pls go through CIT vs ARUMUGHAM CETTIAR(1980) 125 ITR 753(MAD.) case, The asseess was carrying on business of stevedoring. It allowed payments towards commission and MAMOOL(Ie)Bribe) to thwe crew of various ships, calling at the port to obtain 'No-Damage Certificate' from the Captain of the ship for getting payment of bills and for which proof of payment could not be obtained. THe HC took the view that such expenditure was inevitable and customary in this line of business and payments are not illegal. The bombay HC in CIT VS HOECHEST DYES AND CHEMICALS LTD(1984) 17 TAXMAN 399 and CIT VS MILL STORES TRADING CO INDIA (P) LTD (1984) 18 TAXMAN 85 has allowed the claims for secret commission without insisting on prrof pf payment and disclosure of identity of the receipt

EXPENDITURE ON BRIDE IS ALLOWABLE ;) if frequent marriages is your business

Expenditure pertaining to bribe is disallowable

CA..Muguntha.....Clariffy your doubt with ICAI HELP LINE provided for members especially..

BRIBE = Crime = illigel = Disallowed

If you mean business in India, you have to give some sorts of bribe for securing orders , collection etc, whether you call it  is as "bribe" or "commission". I am not going into discussion whether it is good or bad but this is very common and even very much common in PSUs. The practice is "appoint an agent and pay commission like "business solicitation fees" for the desired purpose, account for it as commission and brokerage. No body will touch you subject to you comply section 194H. But if you confiscate any law and pay penalty or bribe, it's a permanent cost with no benefit.

Mr.Robin,

      I dont have any doubt. I also have all supporting case laws. If you can spare ur time to go through the case laws, u can become clear. I hope interpretations in laws are to be made theoretically, rather than saying that bribe is a social crime and all. Pls support ur views with appropriate judgements and references to acts. In India, there is no legislation that says that bribing to non-government officical is a crime. So pls try to support ur answer with some references from acts. I too know that bribing is illegal.But, Sec.37(1) does not insist anything about payment of bribe to non-govt. officials. It just says, it should not be made against any law. Payment of bribe to non-govt officials is not a crime under any law. Then, how can u say that it is to be disallowed.We are professionals and not laymen. So try to substantiate ur anwer with some quotes, rather than saying the ICAI HELP LINE NUMBERS.Its just my humble request

Originally posted by : CA.G.Muguntha Narayanan
	Mr.Robin,       I dont have any doubt. I also have all supporting case laws. If you can spare ur time to go through the case laws, u can become clear. I hope interpretations in laws are to be made theoretically, rather than saying that bribe is a social crime and all. Pls support ur views with appropriate judgements and references to acts. In India, there is no legislation that says that bribing to non-government officical is a crime. So pls try to support ur answer with some references from acts. I too know that bribing is illegal.But, Sec.37(1) does not insist anything about payment of bribe to non-govt. officials. It just says, it should not be made against any law. Payment of bribe to non-govt officials is not a crime under any law. Then, how can u say that it is to be disallowed.We are professionals and not laymen. So try to substantiate ur anwer with some quotes, rather than saying the ICAI HELP LINE NUMBERS.Its just my humble request

 Ethical and unethical is not an issue with the Incoem tax Authority.

U have hit the bulls eye Samiksha. The SC in the case of DR.T.A.QUERESHI vs CIT(2006) 287 ITR has held that each case has to be decided on legal principles and not one one's own moral views

no at all

Yes Mr.Govind. Carry on and complete ur statement

MCdowell case is good example to conclude this topic....One should not take misuse of what is not provided in IT Act or any other Act....that is what CA mugunathan is doing here now.....CA mugunathan Sir Bribe is Disallowed ( Read MCdowell case)