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2013 (8) TMI 326 - AT - Income TaxExpenditure u/s 37(1) - lottery business - A.O. made addition on account of bogus commission - whether payment of commission is against the public policy - CIT deleted addition - Held that:- any expenditure incurred for any purpose which is an offence or which is prohibited by law shall not be allowed to be deducted in computing the income - Nothing has been brought on record that the activities of the agents of making representations and mobilizing public opinion for not exercising option under s. 5 of the Central Act was an offence or was prohibited by law - The State Governments were carrying on their respective lottery businesses and the purpose of the Central Act was to limit such activities within the territories of the States at the option of the States. Thus, there was nothing illegal about carrying on the lottery business or mobilizing opinion for continuation of sale of lottery tickets of other States within the State of Madhya Pradesh. Nothing has been brought on record to show that it was even against the public policy - Following decision of CIT Vs. Khemchand Motilal Jain, P. Ltd. [2011 (8) TMI 70 - MADHYA PRADESH HIGH COURT] - Decided against Revenue.
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