https://www.taxtmi.com/caselaws?id=5630 Amounts paid under an arrangement that contravened foreign exchange law were not allowable as business expenditure or business loss under the Income-tax Act, 1961. Expenditure incurred to facilitate or continue an unlawful transaction is not laid out wholly and exclusively for business purposes, even if the arrangement is said to be commercially convenient or intended to reduce loss. The principle that illegal receipts or losses may sometimes be considered in tax computation does not extend to deductions for outgoings incurred in violation of another statute, where the underlying arrangement is unlawful and opposed to public policy. The claimed reduction of taxable income on the basis of the illegal payment was therefore rejected. en-us Tue, 02 Dec 1997 00:00:00 +0530 Sat, 11 Oct 2025 09:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5630 Amounts paid under an arrangement that contravened foreign exchange law were not allowable as business expenditure or business loss under the Income-tax Act, 1961. Expenditure incurred to facilitate or continue an unlawful transaction is not laid out wholly and exclusively for business purposes, even if the arrangement is said to be commercially convenient or intended to reduce loss. The principle that illegal receipts or losses may sometimes be considered in tax computation does not extend to deductions for outgoings incurred in violation of another statute, where the underlying arrangement is unlawful and opposed to public policy. The claimed reduction of taxable income on the basis of the illegal payment was therefore rejected. Case-Laws Income Tax Tue, 02 Dec 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5630