1989 (9) TMI 24 - HC - Income Tax

Summary

The High Court of Bombay upheld the Tribunal's decision that a penalty of Rs. 15,000 paid by the assessee for infringement of import regulations was allowable as a business expenditure under section 37(1) of the Income-tax Act, 1961. The court found insufficient facts to determine if the penalty was imposed due to the assessee's own violation of the law. The appeal was decided in favor of the assessee with no order as to costs.