Expenditure for any purpose which is an offence or which is prohibited by law is not deductible: SC

CIT Vs Prakash Chand Lunia (D) Thr.Lrs. & Anr. (Supreme Court of India) With The Insertion of Explanation 1 To Sec 37, Decisions of SC In Piara Singh & Dr. T.A. Quereshi (Supra) Do Not Lay Down Correct Law. Silver slabs/ingots were recovered from the premises during the search conducted by DRI. Customs Collector held that the silver was of smuggled nature ordered confiscation of silver valued at Rs.3.06 Crores in addition to imposition of personal penalty of Rs.25 Lakhs under the Customs Act During the income tax assessment proceedings, AO held that investment in this regard was not fo...