https://www.taxtmi.com/caselaws?id=19239 Payment made to customs authorities as a penalty in lieu of confiscation for unauthorised import was not deductible as business expenditure under section 37 of the Income-tax Act, 1961. The Bombay HC treated the outlay as a penalty arising from an infraction of law, not a compensatory or revenue expense incurred wholly and exclusively for business purposes. Accordingly, the deduction claim failed and the issue was decided against the assessee. en-us Thu, 10 Nov 1994 00:00:00 +0530 Wed, 04 Nov 2009 18:08:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19239 Payment made to customs authorities as a penalty in lieu of confiscation for unauthorised import was not deductible as business expenditure under section 37 of the Income-tax Act, 1961. The Bombay HC treated the outlay as a penalty arising from an infraction of law, not a compensatory or revenue expense incurred wholly and exclusively for business purposes. Accordingly, the deduction claim failed and the issue was decided against the assessee. Case-Laws Income Tax Thu, 10 Nov 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19239