https://www.taxtmi.com/caselaws?id=17531 A payment made as a penalty for breach of law, or for unauthorised conduct, is not deductible as business expenditure because it is not incurred wholly and exclusively for business purposes. The distinction is between sums paid under a lawful statutory option or scheme and sums imposed for infraction of law. On the facts, additional royalty or penalty paid for blazes cut on trees not allotted to the assessee fell in the latter category and was treated as a non-allowable business outlay. en-us Tue, 01 Apr 1997 00:00:00 +0530 Wed, 23 Sep 2009 11:34:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17531 A payment made as a penalty for breach of law, or for unauthorised conduct, is not deductible as business expenditure because it is not incurred wholly and exclusively for business purposes. The distinction is between sums paid under a lawful statutory option or scheme and sums imposed for infraction of law. On the facts, additional royalty or penalty paid for blazes cut on trees not allotted to the assessee fell in the latter category and was treated as a non-allowable business outlay. Case-Laws Income Tax Tue, 01 Apr 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17531