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Income Tax - Highlights / Catch Notes

Home Highlights February 2011 Year 2011 This

If a sum was paid by the assessee that may render him liable to ...

Income Tax

February 10, 2011

If a sum was paid by the assessee that may render him liable to penal action, the same could not be allowed as deductible expense – revision u/s 263 upheld -HC

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  2. Penal action may be taken against nominee director on behalf of Public FIs, Financial Institutions & banks on the board of companies for defaults

  3. Once under law the tax is not recoverable, it cannot be justified merely because the party has paid some amount to avoid penal action - HC

  4. Amount paid towards penalty for breach of commercial contract by the assessee is not penal in nature, but compensatory in nature - deduction u/s 37(1) allowed - HC

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  7. Penal Charges paid to Sister Concern towards cost of storage - deduction disallowed - AT

  8. Addition of expenses as penal in nature - forfeiture of the Bank Guarantee - it was related to the business activities of the assessee and was revenue in nature,...

  9. Warehoused goods - warehousing period expired - goods (wine) was rendered unfit for human consumption - relinquishment to the title to goods - The appellant is not...

  10. Disallowing of Peak load violation charges paid to PSEB - nature of expenditure - assessee failed to prove that the claim was not penal in nature - expenditure was...

 

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