Service Tax Penalty Not Deductible as Business Expenditure

Soltek Insolation Pvt. Ltd Vs ITO (ITAT Kolkata) Ld. AR of the assessee submitted that the impugned disallowance to the extent of Rs. 40,000/- made by the Deputy Commissioner of Income Tax, CPC is bad in law by invoking the provisions of section 37(1) of the Act and it is against the law, therefore, it required to be set aside. On the other hand, ld. DR supported the action of the ld. authorities below. He further submitted that the ld. DCIT disallowed the sum of Rs. 77,380/- which comprised of fees on account of penalty under service tax of Rs. 40,000/- interest on account of service tax amou...