https://www.taxtmi.com/caselaws?id=6999 Penalties paid to customs authorities for infringing import control requirements were treated as deductible business expenditure where the assessee had bought the import documents in good faith and paid the amount to secure release of stock-in-trade from confiscation. The payment was regarded as part of the real cost of the imported goods and as expenditure laid out wholly and exclusively for the purposes of business because it preserved trading stock rather than punishing the assessee's own unlawful conduct. On that basis, the amount was allowable in computing business profits under the Income-tax Act, 1922. en-us Thu, 21 Sep 1967 00:00:00 +0530 Sat, 07 Feb 2009 18:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6999 Penalties paid to customs authorities for infringing import control requirements were treated as deductible business expenditure where the assessee had bought the import documents in good faith and paid the amount to secure release of stock-in-trade from confiscation. The payment was regarded as part of the real cost of the imported goods and as expenditure laid out wholly and exclusively for the purposes of business because it preserved trading stock rather than punishing the assessee's own unlawful conduct. On that basis, the amount was allowable in computing business profits under the Income-tax Act, 1922. Case-Laws Income Tax Thu, 21 Sep 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6999