Assessee-company paid fine\/penalty levied upon it by European Commission for violating European Union Competition laws by way of accepting non-compete settlement amount from a European company, such payment could not be disallowed as per Explanation 1 to S.37(1)\u00a0 of the Act\u00a0 . The Tribunal held that what has to be disallowed under Explanation\u00a0 1 to S.37(1) of the Act is a payment made for contravention of laws in force in India and not of any foreign country . The laws are specific to each of the countries according to their rules and regulations and an offence in one country may not be so in another country . Accordingly addition confirmed by the CIT (A) is deleted .\u00a0 As regards whether allowable as business loss as the income was offered in the earlier year , the matter remanded to the file of AO for verification.\u00a0\u00a0\u00a0\u00a0\u00a0 (AY. 2014 -15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure – fine\/penalty levied upon it by European commission for violating European union competition laws by way of accepting non-compete settlement amount from a European company- Payment could not be disallowed as per Explanation 1 to S. 37(1) of the Act \u2013 Allowability of claim as business loss- Matter remanded for verification . [ . General Clauses Act ,1897 , S .3(38) , Indian Evidence Act , 1872 , S. 57(1) , Art . 13 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10074","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Cu","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10074"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10074\/revisions"}],"predecessor-version":[{"id":19223,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10074\/revisions\/19223"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}