Penalty / Fine for violation of procedural law cannot be disallowed- Bombay HC

CIT Vs. The Stock and Bond Trading Company (Bombay High Court)- Payments made by the Assessee to the Stock Exchange for violation of their regulation are not an account of an offence or which is prohibited by law. Hence, the invocation of explanation to section 37 of the Income Tax Act, 1961 is not justified. In our opinion, in the facts and circumstances of the present case, no fault can be found with the decision of the ITAT. HIGH COURT OF BOMBAY INCOME TAX APPEAL NO. 4117 OF 2010 The Commissioner of Income Tax Vs. M/s. The Stock and Bond Trading Company DATE : 14TH OCTOBER, 2011. ORDER ...