https://www.taxtmi.com/caselaws?id=20285 The High Court of Gujarat held that a penalty paid for breaching the Customs Act is not deductible as a business expenditure, following the precedent that penalties for law breaches are not considered commercial losses. The court distinguished between lawful business infractions and inherently unlawful activities, concluding that penalties for the latter are not deductible. Despite arguments by the assessee's advocate, the court maintained that the penalty did not represent a commercial loss and could not be claimed as a deductible expense. The court certified the case as suitable for appeal to the Supreme Court for further legal scrutiny. en-us Wed, 23 Jun 1993 00:00:00 +0530 Fri, 13 Nov 2009 10:25:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20285 The High Court of Gujarat held that a penalty paid for breaching the Customs Act is not deductible as a business expenditure, following the precedent that penalties for law breaches are not considered commercial losses. The court distinguished between lawful business infractions and inherently unlawful activities, concluding that penalties for the latter are not deductible. Despite arguments by the assessee's advocate, the court maintained that the penalty did not represent a commercial loss and could not be claimed as a deductible expense. The court certified the case as suitable for appeal to the Supreme Court for further legal scrutiny. Case-Laws Income Tax Wed, 23 Jun 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20285