Amount paid to SEBI under consent order is allowable business expense

DCIT Vs M/s. Prabhudas Liladhar P. Ltd. (ITAT Mumbai) Conclusion: Payment made by assessee to SEBI under consent order was an allowable business expenditure under section 37(1) and the same was not in the nature of the penalty for infraction of the law. Held: AO had levied penalty under section 271(1)(c) on the ground that payment paid by assessee to SEBI under consent order was in the nature of the penalty for infraction of the law and was hit by Explanation 1 to section 37(1) and hence was not an allowable business expenditure. It was held once the whole basis of addition itself as made by A...