https://www.taxtmi.com/caselaws?id=16991 A fine paid to secure release of confiscated imported goods for violation of customs and import control law is not allowable as a business deduction under section 37 of the Income-tax Act, 1961. The court applied the principle that expenditure incurred for infringement of law is not an ordinary incident of business and is not laid out wholly and exclusively for business purposes. Because the assessee had assumed the risk of importing goods without proper licence coverage, the payment was treated as a non-deductible outgoing and had to be added back to income. en-us Thu, 16 May 1996 00:00:00 +0530 Mon, 14 Sep 2009 15:04:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16991 A fine paid to secure release of confiscated imported goods for violation of customs and import control law is not allowable as a business deduction under section 37 of the Income-tax Act, 1961. The court applied the principle that expenditure incurred for infringement of law is not an ordinary incident of business and is not laid out wholly and exclusively for business purposes. Because the assessee had assumed the risk of importing goods without proper licence coverage, the payment was treated as a non-deductible outgoing and had to be added back to income. Case-Laws Income Tax Thu, 16 May 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16991