https://www.taxtmi.com/caselaws?id=471421 Statutory penalties imposed for contraventions of the Banking Regulation Act are not deductible as business expenditure where the taxpayer does not establish that the levy is compensatory; absence of prima facie money-laundering evidence does not alter the statutory character of the penalty. The payment is therefore barred by Explanation 1 to section 37(1). The book-profit computation mechanism under section 115JB does not apply to a nationalised bank, following the statutory framework and the Finance Act 2012 amendment. Accordingly, the penalty disallowance stands, while the bank remains outside the minimum alternate tax regime. en-us Wed, 16 Oct 2024 00:00:00 +0530 Wed, 02 Sep 2026 13:54:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471421 Statutory penalties imposed for contraventions of the Banking Regulation Act are not deductible as business expenditure where the taxpayer does not establish that the levy is compensatory; absence of prima facie money-laundering evidence does not alter the statutory character of the penalty. The payment is therefore barred by Explanation 1 to section 37(1). The book-profit computation mechanism under section 115JB does not apply to a nationalised bank, following the statutory framework and the Finance Act 2012 amendment. Accordingly, the penalty disallowance stands, while the bank remains outside the minimum alternate tax regime. Case-Laws Income Tax Wed, 16 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471421