1952 (1) TMI 24 - HC - Income Tax

Summary

The High Court of Allahabad ruled that the sum of Rs. 11,265 paid by the assessee was not an admissible deduction under Section 10(2)(xv) of the Income-tax Act. The assessee had underinsured his stock to avoid paying higher premiums, leading to a compounded offense with the Central Government. The court held that the amount was not spent wholly and exclusively for business purposes but to evade prosecution, denying the deduction. The Commissioner of Income-tax was awarded costs of Rs. 300.