Whether Property Tax and "interest on entry tax, PF, ESIC etc." allowed under 37(1) ?
Whether Property Tax and "interest on entry tax, PF, ESIC etc." allowed under 37(1) ?
Under Section 37(1) only penalties paid in connection with an offence is disallowed. Interest paid on PF, ESI is not the same as penalty and hence should be allowable expenditure.
In case of taxes, only income tax and wealth tax is disallowed; property tax is a genuine expenditure which is incurred and hence should be allowed.
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