can Income Tax department allow payment more than Rs.20,000 in cash pay to Police department for protection to Intimidate..
17 Replies
Joey Tribbiani
(fdg)
(2010 Points)
Replied 14 July 2012
Illegal payments are not allowed under any circumstances
M. N. JHA
(CA)
(8316 Points)
Replied 14 July 2012
Take receiept from police then it is allowable otherwise illegal payment not allowed for deduction.
CA Amit Jaiswal
(Finance Manager)
(2720 Points)
Replied 14 July 2012
In this case also the deduction will not be allowed.
CA Amit Jaiswal
(Finance Manager)
(2720 Points)
Replied 14 July 2012
For claiming deduction, you will also be required to deduct TDS (if applicable).
Further, the amount cannot at all be given to police in black so as to claim it as security expenses.
Further, they will not take the amount in white.
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 14 July 2012
These types of expenses are not allowable at all in Income Tax.
Prashanth
(Chartered Accountant)
(2322 Points)
Replied 14 July 2012
Hi,
Refer this
Payment of Protection Money to Rowdies & Police: In the another landmark judgment decided by Karnataka High Court that any payment to police or rowdies for getting protection from them is illegal and should not be allowed. Refer CIT v Neelavathi & Others 322 ITR 643 (2010).
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 14 July 2012
its a illegal expenses, given which is not required to give under government act....... so no question it\ will be disallowed.
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 15 July 2012
undoubtedly illegal expense ...
and hence not allowed as deduction. simple logic
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 15 July 2012
i dont think IT department.. will allow these payment as deduction otherwise everyone will take this advantage to save their taxes...
CA. Aabhishek Khurana
(CHARTERED ACCOUNTANT)
(364 Points)
Replied 15 July 2012
ABSOLUTELY NOT ALLOWED
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 15 July 2012
Not Allowed,
HOWEVER DO CLAIM IT BY TAKING A FAKE BILL FOR ANY EXPENSE,ie , ADJUST UNDER ANY EXPENSE HEAD.
inderpreet singh
(Audit/Accounts assisstant)
(47 Points)
Replied 16 July 2012
undoubtebly this payment is not allowed under37(1). However ransom money paid to free director is allowed as per CIT VS khemchand motilal tobacco products(p) ltd(madhay pradesh)
Saji John
(Finance Manager)
(26 Points)
Replied 16 July 2012
Whether Legal or illegal, the payment made for protection is not allowed.
Recent Topics
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
- TDS Provisions applicability Tax Audit Individual
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
Related Threads
CAclubindia
