2022 (7) TMI 218

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....has taken the following grounds of appeal: "1. For that the orders passed by the lower authorities are arbitrary, erroneous, without proper reasons, invalid and bad-in-law, to the extent to which they are prejudicial to the interests of the appellant. 2. For that the Ld. CIT(A) erred in rejecting the claim of the appellant for deduction of Rs.5,00,000/- paid to the West Bengal Fire Service Deptt. ought to have been allowed by the A.O as it related to the business activities of the appellant and being revenue expenditure its disallowance by the A.O without properly appreciating the factual aspect of the matter was entirely uncalled for. 3. For that the Ld. CIT(A) erred in holding that the payment of Rs.5,00,000/- t....

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....cumentary evidence furnished by the assessee. The assessee has submitted that the Director General, West Bengal Fire and Emergency Services directed the appellant to deposit a sum of Rs.5,00,000/- as fees under the West Bengal Fire Services Act vide order dated 26.04.2013. A perusal of the order dt. 26.04.2013 however clearly shows that the payment of Rs.5,00,000/- is penal in nature, being compounding fees for violation of section 11C and 12 of West Bengal Fire Service Act, 1950 which is punishable under section 11C and under section 26 of the said Act respectively. The relevant Paras of the order dt. 26.04.2013 of the DG,WB Fire and Emergency Services are reproduced below- "Consequent upon devastating fire on 03.01.2013 at about ....

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....Services, the commission of offence(s) punishable under this Act is hereby compounded by the undersigned, being the Director General, West Bengal & Emergency Services duly empowered by the West Bengal Fire Services Act, 1950 u/s 38B, Shri Sushil Kumar Jain, Chandrakant Jain and Rahul Jain are hereby directed to deposit a sum of Rs.5,00,000/- (Rupees Five Lakh) only in T.R. Form No. 7 in any Government Treasury / Revenue Bank of India, Kolkata or schedule Bank under the head of account 0070-60-109 Fire protection and control 001 Fees under the West Bengal Fire Services Act 14 Services Fees". Only after production of receipt of making such payment to the Government to the Government exchequer, offence(s) will be treated to have been compounde....