Tax fine for illegal building deviations not deductible as business expense under Explanation to Section 37(1) continues The SC disposed of the civil appeals as withdrawn on the appellant's request to avail remedy under the Vivaad Se Vishwas Scheme. Consequently, the SC did ...
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Tax fine for illegal building deviations not deductible as business expense under Explanation to Section 37(1) continues
The SC disposed of the civil appeals as withdrawn on the appellant's request to avail remedy under the Vivaad Se Vishwas Scheme. Consequently, the SC did not examine or disturb the judgment of the HC, which had held that amounts paid by the assessee towards fine/penalty for regularisation of deviations in building construction fall within the mischief of the Explanation to Section 37(1) of the Income-tax Act and are not allowable as deductible business expenditure. The HC's legal position therefore continues to govern the parties' tax liability.
In these civil appeals before the Supreme Court of India, counsel for the appellants sought permission to withdraw the appeals in order to avail the remedy under the "Vivaad Se Vishwas Scheme," a statutory dispute resolution mechanism for settling tax and related disputes. The Court granted permission to withdraw, thereby disposing of the civil appeals as withdrawn. By doing so, the Court effectively allowed the appellants to pursue resolution of their disputes under the specified statutory scheme. All pending applications connected with the appeals were also ordered to stand disposed of.
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