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2011 (8) TMI 70 - HC - Income TaxPayment of ransom money - kidnap of the Director - deduction u/s 37(1) - Held that: - Sukhnandan Jain remained in custody for a period of nearabout 20 days. The police were also informed and after waiting 20 days for the police action, If the respondents to save his life paid the aforesaid amount, then the aforesaid amount cannot be treated as an action which prohibited under the law. No provision could be brought to our notice that payment of ransom is an offence. In absence of which, the contention of the petitioner that it is prohibited under explanation of Section 37 (1) of the Incometax Act has no substance.The entire tour of Sukhnandan Jain was for purchase of tendu leaves of quality and for this purpose,he was on business tour and during his business tour, he was kidnapped and for his release the aforesaid amount was paid. - Deduction allowed.
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