Expenses incurred to defend directors arrested under NDPS Act not allowable

Explanation to section 37(1) provides :” that 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.” A bare perusal of this provision indicates that incurring of any expenditure for a purpose which is an offence or prohibited by law cannot be allowed as deduction.

When we advert to the facts of the instant

Please become a Premium member. If you are already a Premium member, login here to access the full content.