Supreme Court of India
The Commissioner of Income Tax Jaipur v. Prakash Chand Lunia (d) Thr. Lrs. & Anr.
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What the Court ordered
In view of the aforesaid discussion, I am inclined to hold that the appeal of the Revenue deserves to be allowed, though con scious of the fact that Section 115BBE of the Act may not have an applic ation to the case on hand being prospective in nature.
Judgment, page 49
From the headnote
Income Tax Act, 1961 – Explanation to s.37(1) – ‘an y expenditure’ in s.37 – Expenditure/loss incurred fo r any purpose which is an offence or prohibited by law, not deductible in terms of Explanation 1 to s.37 – High Court relying upon the decision of Supreme Court in Piara Singh case allowed the loss of confiscation of silver bars as a business loss – Sustainability of – Held: Not sustainable – Explanation to s.37(1) provides that any expenditure incurred by the assessee for any purpose which is a n offence or prohibited by law is not an allowable business expe nse – In the present case,
Authorities it was built on
- 1953 Maqbool Hussain v. The State of Bombay
- 1962 Jagannath Sonu Parkar v. State of Maharashtra
- 1971 Madhusudan Gordhandas & Co. v. Madhu Woollen Industries Pvt. Ltd.
- 1988 Chuharmal S/0 Takarmal Mohnani v. Commissioner of Income-tax, M.P., Bhopal
- 1953 Commissioner of Income-tax, West Bengal v. H. Hirjee
- 1971 Commissioner of Income Tax, Gujarat v. M/s. S. C. Kothari
- 2006 Dr. T.A. Quereshi v. Commissioner of Income Tax, Bhopal
- 2007 Commissioner of Income Tax, Salem v. K. Chinnthamban
- 1960 M/s. Haji Aziz and Abdul Shakoor Bros. v. The Commissioner of Income-tax, Bombay City Ii
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