https://www.taxtmi.com/caselaws?id=798200 RBI monetary penalties for lending-related supervisory non-compliance are deductible under Explanation 1 to section 37(1) where the payment is not shown to relate to an offence or prohibited activity; regulatory power to levy the penalty is not conclusive. For banking companies, no section 14A and Rule 8D disallowance arises where securities are held as stock-in-trade and income is business income. Net depreciation on investments is allowable when computed under RBI guidelines and Part B of ICDS VIII, subject to the prescribed net-depreciation limitation. ESOP discount is deductible revenue expenditure because it is employee compensation, notwithstanding settlement through shares or no immediate cash outflow. en-us Mon, 31 Aug 2026 00:00:00 +0530 Thu, 03 Sep 2026 08:20:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798200 RBI monetary penalties for lending-related supervisory non-compliance are deductible under Explanation 1 to section 37(1) where the payment is not shown to relate to an offence or prohibited activity; regulatory power to levy the penalty is not conclusive. For banking companies, no section 14A and Rule 8D disallowance arises where securities are held as stock-in-trade and income is business income. Net depreciation on investments is allowable when computed under RBI guidelines and Part B of ICDS VIII, subject to the prescribed net-depreciation limitation. ESOP discount is deductible revenue expenditure because it is employee compensation, notwithstanding settlement through shares or no immediate cash outflow. Case-Laws Income Tax Mon, 31 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798200