Hi..
Please let me know ROC additional fee paid allowed to deduct from Income under income tax act or not?
Section 37(1) provides for a general deduction for all expenditure laid out wholly and exclusively for the purpose of the business or profession. The relevant exclusions made by the section along with the Explanation 1 are the following:
(i) Expenses of capital nature,
(ii) Expenses which are personal in nature,
(iii) Expenses incurred for any purpose which is an offence by law,
(iv) Expenses incurred for any purpose which is prohibited by law
The question of its deductibility or allowability depends on the fact whether these expenses can be regarded as expenditure laid out wholly and exclusively for the purpose of the business or profession or hit by the exclusions provided.
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