1989 (9) TMI 67

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..... (1) of the Income-tax Act 1961 (hereinafter referred to as "the. Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in directing the deduction of Rs. 6,700 as business expenditure ?" The material facts giving rise to this reference, .....

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..... e of the Revenue that the aforesaid question of law has been referred to this court for its opinion. Having heard learned counsel for the parties, we have come to the conclusion that this reference must be answered in the negative and in favour of the Revenue. Dealing with the question as to whether expenditure incurred by the assessee on account of levy of penalty under the Sales Tax Act can be .....

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..... As the penalty in the instant case has been imposed on the assessee for breach of the law, the Tribunal was not right in directing the deduction of Rs. 6,700 as business expenditure. For all these reasons, our answer to the question referred to us is in the negative and in favour of the Revenue. In the circumstances of the case, parties shall bear their own costs of this reference.
Case laws, .....

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