https://www.taxtmi.com/caselaws?id=193239 Compounding a criminal offence under the War Risks (Goods) Insurance Ordinance was not an expenditure wholly and exclusively laid out for business purposes where it arose from deliberate undervaluation of stock and the need to avoid prosecution. The court treated such outlay as connected to a dishonest act, not the conduct of trade, so it could not be deducted under the income-tax provision. Only the amount corresponding to the insurance premium that would have been payable for proper cover could be linked to business, while the balance remained non-deductible. The reference was answered against the assessee. en-us Tue, 08 Jan 1952 00:00:00 +0530 Wed, 19 Jul 2017 18:00:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193239 Compounding a criminal offence under the War Risks (Goods) Insurance Ordinance was not an expenditure wholly and exclusively laid out for business purposes where it arose from deliberate undervaluation of stock and the need to avoid prosecution. The court treated such outlay as connected to a dishonest act, not the conduct of trade, so it could not be deducted under the income-tax provision. Only the amount corresponding to the insurance premium that would have been payable for proper cover could be linked to business, while the balance remained non-deductible. The reference was answered against the assessee. Case-Laws Income Tax Tue, 08 Jan 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193239