Allowing the appeal of the revenue , the Tribunal held that ;amount spent by assessee in respect of manufacturing goods which were ordered to be destroyed by court in terms of provisions of Prevention of Food Adulteration Act,1954 cannot be allowed as deduction in view of applicability of Explanation to S. 37(1) of the Act.( AY. 2012-13 )
ACIT v. Vishnu Packaging. (2018) 168 ITD 103/191 TTJ 468 / 161 DTR 201 (Ahd) (Trib.)
S. 37(1): Business expenditure –Goods destroyed by order of Court order in terms of provisions of prevention of Food Adulteration Act cannot be allowable as business expenditure in view of Explanation to S. 37(1) [ Prevention of Food Adulteration Act , 1954 ]