Deductibility of customs penalties denied where misclassification penalties, both personal and in lieu fines, are disallowable. Customs penalties for misclassification are not deductible: personal penalties under section 112 are disallowed as they presuppose deliberate breach, and fines in lieu of confiscation under section 125, even when imposed after considering bonafides and aimed at removing undue profit for bona fide mistakes, arise from a contravention and are not normal business expenses, thus not allowable as deductions.
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.
Deductibility of customs penalties denied where misclassification penalties, both personal and in lieu fines, are disallowable.
Customs penalties for misclassification are not deductible: personal penalties under section 112 are disallowed as they presuppose deliberate breach, and fines in lieu of confiscation under section 125, even when imposed after considering bonafides and aimed at removing undue profit for bona fide mistakes, arise from a contravention and are not normal business expenses, thus not allowable as deductions.
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