Compensation paid for damage to environment is allowable

Advocate Akhilesh Kumar Sah A LIGHT AT THE END OF THE TUNNEL VIS-À-VIS EXPLANATION-1 TO SECTION 37 In view of the Explanation-1 inserted by the Finance (No.2) Act, 1998 to the section 37(1) of the Income Tax Act, 1961(herein referred to as ‘the Act’), with retrospective effect from 1-4-1962, any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure. Therefore, in view of above retros...