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2012 (7) TMI 943 - AT - Income TaxNon-deduction of tax - Held that:- As the amount already paid before 31st March of the relevant accounting period there cannot be any disallowance under s. 40(a)(ia) of the Act. Accordingly, the orders of authorities below are set aside and the addition made by the AO is deleted. Disallowance of rent paid by the assessee - Held that:- As the rent claimed was already paid before 31st March. Therefore, in view of the decision of the Special Bench of this Tribunal at Visakhapatnam in Merilyn Shipping and Transports (2012 (4) TMI 290 - ITAT VISAKHAPATNAM ), there cannot be any disallowance. Expenses disallowed by the AO towards penalty imposed by the police - Held that:- As the assessee has paid the penalty for violating provisions of law. The police authorities levied penalty in the course of regulating the traffic. Therefore, whatever may be the reason for paying penalty, it is paid for violation of traffic rules. Therefore it is against the public policy and hence such payment cannot be allowed as business expenditure. Accordingly, the order of the CIT(A) is confirmed on this ground.
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