electricity charges for unauthorised use

[satbir singhwahi]

Charges has been levied by electricity board for unauthorised use of electricity. Whether these charges can be claimed as deductible under  Income Tax Act.

AI Summary

Electricity charges for unauthorized use can be tax-deductible if not deemed a penalty under Income Tax Act. Charges imposed by the electricity board for unauthorized use of electricity were questioned for their deductibility under the Income Tax Act. The response clarified that if these charges are for the consumption of electricity, they may be deductible. However, if the charges are considered a penalty, they are not deductible.