https://www.taxtmi.com/circulars?id=8687 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. en-us Fri, 24 Apr 1970 00:00:00 +0530 Wed, 25 May 2011 15:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=8687 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. Circulars Income Tax Fri, 24 Apr 1970 00:00:00 +0530 https://www.taxtmi.com/circulars?id=8687