2011 (10) TMI 462

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.... For Respondent : Mr.T.Ravi Kumar Senior Standing Counsel   J U D G M E N T   P.JYOTHIMANI, J.   This tax case appeal filed by the assessee pertains to the assessment year 1992-1993 and is against the order the Appellate Tribunal dated 23.9.2004 made in ITA No.2367/Mds/1995.   2. The appellant is admittedly an agent of a non-resident shipping company. The assessee'....

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....issioner of Income Tax v. Abdullabhai Abdulkadar, [1961] 41 ITR 545 and Indian Aluminium Co. Ltd v. Commissioner of Income Tax, [1971] 79 ITR 514, wherein it has been categorically held that in respect of the non-resident principal, the tax paid by the agent cannot be treated as bad debt.   4. The Tribunal has correctly considered that the assessee, being the agent of the non-resident tax ....

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.... the provisions of this Act from any assets of the non-resident which are, or may at any time come, within India."   5. Section 36 of the Act relates to other deductions. Sub-section (1)(vii) to Section 36 of the Act, which is as follows:   "Section 36. Other deductions:   (1) The deductions provided for in the following clauses shall be allowed in respect of the matters de....

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.... under the head Profits and gains of business or profession .   Explanation. For the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expendit....