https://www.taxtmi.com/caselaws?id=799218 Regulatory stock-exchange charges arising from delivery, reporting, deposit, margin and client-code lapses are compensatory rather than expenditure for an offence or a purpose prohibited by law. Their description as penalties or fines in a tax-audit report does not change that character, so they remain allowable business expenditure. A health and education cess deduction claimed with full disclosure under the then-prevailing judicial interpretation does not constitute under-reporting or misreporting merely because a later retrospective amendment disallows the claim. No penalty arises for such a bona fide disclosed claim. en-us Mon, 31 Aug 2026 00:00:00 +0530 Fri, 18 Sep 2026 07:32:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=799218 Regulatory stock-exchange charges arising from delivery, reporting, deposit, margin and client-code lapses are compensatory rather than expenditure for an offence or a purpose prohibited by law. Their description as penalties or fines in a tax-audit report does not change that character, so they remain allowable business expenditure. A health and education cess deduction claimed with full disclosure under the then-prevailing judicial interpretation does not constitute under-reporting or misreporting merely because a later retrospective amendment disallows the claim. No penalty arises for such a bona fide disclosed claim. Case-Laws Income Tax Mon, 31 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=799218