Penalty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2011 Whether penalty paid in a foreign country for foreign operations is also not deductible under Income Tax Act,1961.

Sorry expert. I properly word the query as follows:

A company has foreign operations. In that foreign country, penalty has been paid under the laws of that foreign country and debited to P&L A/c.

Now whether this expenses is deductible u/s 37 of the Income Tax Act, 1961 in India.

Further is there any judgement to support that it is deductible or not deductible.

I referred some books but could not get a judgement on the said matter.

If anyone can help in this regard, it will be of great use. Thanks in advance.