1985 (8) TMI 40 - HC - Income Tax

Summary

The High Court of Madhya Pradesh was asked to decide if a penalty imposed under the M.P. General Sales Tax Act could be deducted as a business expenditure under the Income-tax Act. The court held that the deduction depends on whether the penalty is merely a difference in tax rates or an amount in excess of that difference. The court directed the Tribunal to provide a supplementary statement of case with the necessary facts for a decision.