https://www.taxtmi.com/caselaws?id=35092 Commission paid to Government doctors for prescribing an assessee's medicines was held not to be deductible under Section 37 of the Income-tax Act, 1961, because the payment was treated as illegal gratification or a bribe. Expenditure incurred for a purpose that is an offence or prohibited by law falls outside the statutory allowance for business expenditure. Authorities dealing with business loss were held inapplicable, as the claim concerned expenditure, not loss. The decisive distinction was between lawful commercial outgoings and payments made in breach of law, and the deduction was therefore disallowed. en-us Thu, 21 Feb 2008 00:00:00 +0530 Fri, 16 Sep 2011 15:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35092 Commission paid to Government doctors for prescribing an assessee's medicines was held not to be deductible under Section 37 of the Income-tax Act, 1961, because the payment was treated as illegal gratification or a bribe. Expenditure incurred for a purpose that is an offence or prohibited by law falls outside the statutory allowance for business expenditure. Authorities dealing with business loss were held inapplicable, as the claim concerned expenditure, not loss. The decisive distinction was between lawful commercial outgoings and payments made in breach of law, and the deduction was therefore disallowed. Case-Laws Income Tax Thu, 21 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35092