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2022 (7) TMI 218 - ITAT KOLKATAAllowable business expenditure u/s 37 - amount paid by the assessee to West Bengal Fire Service Department - assessee has claimed before the lower authorities that the aforesaid amount was paid to West Bengal Fire Service Department for providing manpower and put in service ten (10) number jets for extinguishing the fire - disallowance made as aforesaid payment was penal in nature being compounding fees for violation of section 11C and 12 of West Bengal Fire Service Act, 1950 which is punishable u/s 11C and u/s 26 of the said Act - HELD THAT:- As specific query was put by us to the ld. counsel for the assessee as to on what account the aforesaid expenditure was incurred. The ld. counsel has stated that the West Bengal Fire Service has charged the aforesaid amount from the assessee without any reason. He has further submitted that the assessee wants to place on the file a paperbook to prove the nature of the expenditure. As it is clearly mentioned in the impugned order of the CIT(A) that the aforesaid payment was made by the assessee by pleading guilty to the charges levelled vide police case no.03 dated 04.01.2013 on account of detection of nonprovision of the Fire Safety Measures in accordance with the West Bengal fire Services Act, 1950 in violation of section 11C and 12 of the West Bengal Fire Service Act, 1950 which is punishable u/s 11C and u/s 26 of the said Act respectively. Even the order dated 26.04.2013 of the DG, West Bengal Fire and Emergency Services has been reproduced. As counsel has placed on file the challan for depositing of money wherein it has been specifically mentioned that the aforesaid payment is for compounding u/s 38B of West Bengal Fire Services Act, 1950. The facts are apparent that the aforesaid payment was made by the assessee as compounding fees by pleading guilty before the competent authority of commission of offences under the West Bengal Fire Services Act 1950. Offence for non-compliance of fire safety provisions is heinous which may result into breakage of fire putting risk to life and limb of residents as well as other public at large. Any payment made by the assessee as compounding fees for such an offence has rightly been disallowed by the lower authorities. The assessee in this case right from the Assessing Officer to the level of the Tribunal has tried to misguide authorities about the nature of payment which act of the assessee is highly deprecable. Appeal of assessee dismissed.
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