Is Penalty levied by High Court on the company is allowable expense as per Income Tax Act?
Background: A company is fined by High Court to Pay 10 Lakh as fine for the breach of law. Will this 10 lakh be allowed expense of be disallowed and to be added in income at the time of Income Tax Computation.
Penalties or fines for breach of law are disallowed as expenses under IT act.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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