Discuss giving reason regarding admissibility or otherwise of the following expenditures while computing income under the head Income from Business or Profession: Penalty paid to customs authorities for importing prohibi
CS Executive · Tax Laws · PYQS · June 2019
Discuss giving reason regarding admissibility or otherwise of the following expenditures while computing income under the head Income from Business or Profession: Penalty paid to customs authorities for importing prohibited goods which gave a huge profit to the business.
Answer & Explanation:
Not Admissible - Penalty paid to customs authorities for importing prohibited goods is an illegal activity and therefore not admissible while computing income under the head Income from business or profession.
Topics: Income Tax Act, 1961
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