9911796707
TMI Blog2015 (12) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... ognized. Disallowance of the claims made by certain assessees in respect of payments on account of protection money, extortion, hafta, bribes, etc., as business expenditure. It is well decided that unlawful expenditure is not an allowable deduction in computation of income. Further, the addition had been made to the total income under Sections 68 and 69 of the Act as the cash was found credited in the books of account of the assessee and had been invested in the bank account of the assessee. In such circumstances, no fault can be found with the orders of the Assessing Officer, the CIT(A) and the Tribunal which may warrant interference by this Court. - Decided against assessee. - ITA No. 252 of 2015 (O&M) - - - Dated:- 15-9-2015 - Aja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay and is doing the business under the name of Prime Commodities. The transactions are duly supported by the reconciliation of the cash received (Annexure A-1) from the customers for the purchase of commodities. The assessee filed the return of income electronically on 31.10.2007 through acknowledgment No. 7840720311007 at an amount of ₹ 2,50,090/-. The scrutiny assessment proceedings were through issuance of notice dated 2.9.2008 under Section 143(2) of the Act and thereafter notice dated 12.6.2009 under Section 142(1) of the Act was served upon the assessee for furnishing reply to the questionnaire. A show cause notice dated 12.11.2009 (Annexure A-2) was issued to the assessee. It was submitted by him that the written pleadings furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Explanation to Section 37 of the Act. 5. After hearing learned counsel for the appellant, we do not find any substance in the said submission. 6. This Court in ITA No. 445 of 2006 (The Commissioner of Income-tax, Jalandhar v. M/s Kap Scan Diagnostic Centre Pvt. Ltd.) decided on 3.12.2010 while dealing with the similar legal issue after referring to the judgment in T.A. Quereshi's case (supra) had decided the same against the assessee with the following observations:- 12. Section 37 is a residuary provision. An assessee is entitled to deduction of all expenditure which is wholly and exclusively laid out or expended for the purposes of the business which has not been expressly covered by any other specific provision o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endment will result in disallowance of the claims made by certain assessees in respect of payments on account of protection money, extortion, hafta, bribes, etc., as business expenditure. It is well decided that unlawful expenditure is not an allowable deduction in computation of income. 20.2 This amendment will take effect retrospectively from Ist April, 1962, and will, accordingly, apply in relation to the assessment year 1962-63 and subsequent years. 16. It, thus, emerges that an assessee would not be entitled to deduction of payments made in contravention of law. Similarly, payments which are opposed to public policy being in the nature of unlawful consideration cannot equally be recognized. It cannot be held that businessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
