https://www.taxtmi.com/caselaws?id=12897 An arrack dealer's expenditure to secure raids against illicit distillation and sale was treated as incurred wholly for business purposes under section 37(1) of the Income-tax Act, 1961. The High Court held that the payments were aimed at protecting and facilitating the assessee's lawful business, not at furthering any unlawful activity of the assessee itself. Commercial expediency therefore justified the deduction, and the fact that the raids were conducted by the Excise Department did not change the character of the expense. The raid expenses were accordingly allowable as business expenditure. en-us Mon, 24 Jan 2000 00:00:00 +0530 Fri, 22 May 2009 18:09:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12897 An arrack dealer's expenditure to secure raids against illicit distillation and sale was treated as incurred wholly for business purposes under section 37(1) of the Income-tax Act, 1961. The High Court held that the payments were aimed at protecting and facilitating the assessee's lawful business, not at furthering any unlawful activity of the assessee itself. Commercial expediency therefore justified the deduction, and the fact that the raids were conducted by the Excise Department did not change the character of the expense. The raid expenses were accordingly allowable as business expenditure. Case-Laws Income Tax Mon, 24 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12897