https://www.taxtmi.com/caselaws?id=790881 Penalty paid for breach of RBI lending directions was treated as a business outgo and not hit by Explanation 2 to section 37(1) because the violation was not founded on an offence. CSR expenditure incurred after the amendment to section 37(1) was not allowable as business deduction, and the assessee's goodwill argument could not override the statutory bar. A new claim relating to recovery from bad debts written off by rural branches could be raised before the appellate authority, and taxability of income from sale of Priority Sector Lending Certificates could also be examined on the existing record; both matters were remitted for fresh adjudication after hearing the assessee. en-us Tue, 07 Apr 2026 00:00:00 +0530 Sat, 02 May 2026 07:40:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790881 Penalty paid for breach of RBI lending directions was treated as a business outgo and not hit by Explanation 2 to section 37(1) because the violation was not founded on an offence. CSR expenditure incurred after the amendment to section 37(1) was not allowable as business deduction, and the assessee's goodwill argument could not override the statutory bar. A new claim relating to recovery from bad debts written off by rural branches could be raised before the appellate authority, and taxability of income from sale of Priority Sector Lending Certificates could also be examined on the existing record; both matters were remitted for fresh adjudication after hearing the assessee. Case-Laws Income Tax Tue, 07 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790881