2025 (12) TMI 303 - SCH - Income Tax

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The SC disposed of the civil appeals as withdrawn on the appellant's request to avail remedy under the Vivaad Se Vishwas Scheme.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 ... Allowable expenses u/s 37 - amount which has been paid by the assessee for deviation in the buildings constructed by them - levying fine/amount of penalty which undisputably has been paid by the assessee - HC [2009 (11) TMI 1015 - KARNATAKA HIGH COURT] held that amounts paid towards fine/penalty for getting the construction regularised would come within the mischief of explanation to Section 37 (1) Appellant(s) seeks permission to withdraw the appeals and seek remedy under the Vivaad Se Vishwas Scheme. HELD THAT:- Permission is granted. The Civil Appeals are, accordingly, disposed of as withdrawn. 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 The Court granted permission to withdraw, thereby disposing of the civil appeals as withdrawn.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.