Illegal-purpose expenditure non-deductible: amendment disallows tax deductions for expenses incurred for offences or prohibited acts. Any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure; the Explanation is deemed effective from 1 April 1962.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Illegal-purpose expenditure non-deductible: amendment disallows tax deductions for expenses incurred for offences or prohibited acts.
Any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure; the Explanation is deemed effective from 1 April 1962.
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