1989 (9) TMI 67 - HC - Income Tax

Summary

The High Court of Madhya Pradesh ruled that expenditure on penalty under Sales Tax Act is not allowable as business expenditure under section 37(1) of the Income-tax Act. The Tribunal was not right in directing the deduction of Rs. 6,700. The reference was answered in the negative in favor of the Revenue. (Case citation: 1989 (9) TMI 67 - MADHYA PRADESH High Court)