Held that  the finding of the Assessing Officer that the assessee’s trade and business in iron ore during the relevant period was carried on by him without the permits as required under section 4(1A) of the 1957 Act and therefore, such business was being run contrary to law, could not be faulted. The object of Explanation 1 to sub-section (1) of section 37 is to discourage the businesses and professions that are tainted with illegality. Therefore, the expenditure incurred for purchasing the iron ore by the assessee could not have been deducted under section 37(1) of the 1961 Act. Relied on Maddi Venkataraman and Co. (P.) Ltd. v. CIT [1998] 229 ITR 534 (SC)