https://www.taxtmi.com/caselaws?id=166270 An amount paid in lieu of confiscation for importing goods in breach of a prohibition was held not deductible as business expenditure under section 10(2)(xv). The court construed the provision as limited to expenditure incurred in carrying on lawful business, and ruled that a payment made because of a breach of law is not an outlay laid out wholly and exclusively for business purposes, even if it secures release of stock-in-trade. It also rejected any distinction between confiscation of goods and penalty on the owner, treating both as consequences of the same unlawful act. The deduction was therefore disallowed and the reference answered against the assessee. en-us Fri, 25 Feb 1955 00:00:00 +0530 Tue, 09 Sep 2014 15:04:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166270 An amount paid in lieu of confiscation for importing goods in breach of a prohibition was held not deductible as business expenditure under section 10(2)(xv). The court construed the provision as limited to expenditure incurred in carrying on lawful business, and ruled that a payment made because of a breach of law is not an outlay laid out wholly and exclusively for business purposes, even if it secures release of stock-in-trade. It also rejected any distinction between confiscation of goods and penalty on the owner, treating both as consequences of the same unlawful act. The deduction was therefore disallowed and the reference answered against the assessee. Case-Laws Income Tax Fri, 25 Feb 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166270