Amount paid for compounding of offence not allowable u/s 37(1) of the Income Tax Act, 1961

DETAILS OF CASE LAW IN THE CASE OF : Millennia Developers Pvt. Ltd. Vs DCIT, Appeal No.:ITA No. 810/2009, Decided by: HIGH COURT OF KARNATAKA, Decided on: January 19, 2010 RELEVANT PARAGRAPHS: 8. The  appeal is sought for admission on the following questions of law:- i) Whether in law, the Tribunal was justified in upholding the dis allowance of payment of Rs.4,40,5007- for regularisation of the deviations which were within the permissible limits, holding it as penalty and thus not liable to be allowed U/s.37(1)of the Act. ii) Whether in law under the KMC Act the payment made for regularisat...