https://www.taxtmi.com/article/detailed?id=12122 Deductibility depends on character: payments that are compensatory, incurred to regularise transactions and to provide the assessee guidance on future compliance, can be treated as allowable expenditures, while payments that are punitive sanctions for intentional breaches of law are not deductible; the Explanation excluding expenditure incurred for an offence or prohibited by law and related administrative guidance embody this exclusion, and a tribunal accepted that a penalty paid to regularise foreign donations was compensatory and allowable. en-us Wed, 13 Dec 2023 11:45:36 +0530 Wed, 13 Dec 2023 11:45:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=12122 Deductibility depends on character: payments that are compensatory, incurred to regularise transactions and to provide the assessee guidance on future compliance, can be treated as allowable expenditures, while payments that are punitive sanctions for intentional breaches of law are not deductible; the Explanation excluding expenditure incurred for an offence or prohibited by law and related administrative guidance embody this exclusion, and a tribunal accepted that a penalty paid to regularise foreign donations was compensatory and allowable. Articles Income Tax Wed, 13 Dec 2023 11:45:36 +0530 https://www.taxtmi.com/article/detailed?id=12122