2000 (1) TMI 6 - HC - Income Tax

Summary

The High Court of Karnataka ruled that raid expenses incurred by an assessee in helping excise authorities are allowable under section 37(1) for deduction. The Income-tax Officer initially disallowed the claim, but the Tribunal upheld 50% of the expenses. The court found the expenses were for the purpose of business and commercial expediency, thus allowing the deduction. The judgment was in favor of the assessee and against the Department.