Hindustan Coca Cola Beverages (P) Ltd. v.AD.CIT (2025) 233 TTJ 777 / 170 taxmann.com 633/ 122 ITR 290 (Delhi)(Trib)

S.37(1): Business expenditure-Seizure of Truck-Penalty, fine, etc.-Levy of penalty under State VAT law-Issue pending before Commr. of Commercial Taxes-Not allowable as deduction-Liberty is given to the assessee to file application under s. 154 in case the issue pending before the first appellate authority is decided in favour of the assessee or it is adjudicated as compensation or compounding.[S. 37(1), Explantion 1, 154]

 

Held that penalty levied on the assessee under State VAT law on seizure of its truck, carrying finished goods, with wrong way bill cannot be allowed as business expenditure. As the   issue under consideration is pending before Commr. Of Commercial Taxes, and has not reached finality, liberty is given to the assessee to file application under S.  154 in case the issue pending before the first appellate authority is decided in favour of the assessee or it is adjudicated as compensation or compounding. (AY. 2014-15 to 2016-17)

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