https://www.taxtmi.com/caselaws?id=166271 Expenditure incurred to facilitate export of wool in contravention of the Export Control regime was held not to be an allowable deduction. The court reasoned that a payment directly and proximately connected with an unlawful act is not laid out wholly and exclusively for business purposes under section 10(2)(xv) of the Indian Income-tax Act, 1922. It further held that the same amount could not be claimed as a trading outgoing under section 10(1) merely by reference to commercial accountancy, because expenditure otherwise prohibited by law does not become deductible through a different accounting route. The deduction was therefore disallowed. en-us Thu, 19 Jan 1961 00:00:00 +0530 Tue, 09 Sep 2014 15:59:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166271 Expenditure incurred to facilitate export of wool in contravention of the Export Control regime was held not to be an allowable deduction. The court reasoned that a payment directly and proximately connected with an unlawful act is not laid out wholly and exclusively for business purposes under section 10(2)(xv) of the Indian Income-tax Act, 1922. It further held that the same amount could not be claimed as a trading outgoing under section 10(1) merely by reference to commercial accountancy, because expenditure otherwise prohibited by law does not become deductible through a different accounting route. The deduction was therefore disallowed. Case-Laws Income Tax Thu, 19 Jan 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166271