https://www.taxtmi.com/caselaws?id=298995 HC dismissed the assessee's appeal, holding that payments made to the municipal authorities as fine/penalty for regularisation of deviations in construction are not allowable as deductible business expenditure under s. 37(1) of the IT Act. Relying on its earlier ruling in Mamta Enterprises, HC held that such payments fall squarely within the mischief of the Explanation to s. 37(1) as amounts incurred for a purpose prohibited by law. The assessee failed to show any distinguishing facts or substantial question of law, and the appeal was accordingly rejected. en-us Tue, 17 Nov 2009 00:00:00 +0530 Tue, 02 Dec 2025 14:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=298995 HC dismissed the assessee's appeal, holding that payments made to the municipal authorities as fine/penalty for regularisation of deviations in construction are not allowable as deductible business expenditure under s. 37(1) of the IT Act. Relying on its earlier ruling in Mamta Enterprises, HC held that such payments fall squarely within the mischief of the Explanation to s. 37(1) as amounts incurred for a purpose prohibited by law. The assessee failed to show any distinguishing facts or substantial question of law, and the appeal was accordingly rejected. Case-Laws Income Tax Tue, 17 Nov 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=298995