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2008 (2) TMI 423 - HC - Income TaxCommission paid to Government Doctors - contravention of the Public Policy – held that - that the sum of Rs. 1,08,678/- paid as commission to Government Doctors/vaids cannot be allowed as business expenditure under the Act and, therefore, the question has to be answered in favour of the Revenue and against the assessee - The explanation to section 37(1) disallowed an expenditure which is incurred by an assessee for a purpose which is an offence or which is prohibited by law. The explanation thus makes it clear that such an expenditure shall not be treated to be a business or professional expenditure - The amount paid to the Government Doctors by the assessee clearly comes within the category of "illegal gratification" or "bribe". - payment as commission to Government Doctors for obtaining a favour therefrom by prescribing medicines in which the assessee was dealing cannot be said to be a "business expenditure" and no deduction can be allowed thereof under the Act
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