police had impounded the vehicle and put a challan for overloading and incomplete papers, we had paid a sum of rs 21000 as penalty to release the vehicle,wht should be the treatment of this transaction.
manik (ca in practice) (420 Points)
14 June 2011police had impounded the vehicle and put a challan for overloading and incomplete papers, we had paid a sum of rs 21000 as penalty to release the vehicle,wht should be the treatment of this transaction.
Sultan Mohiuddin
(Practicing Chartered Accountant)
(56 Points)
Replied 14 June 2011
if its in the nature of penalty,then it will not be allowed as it is inadmissible expense.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 14 June 2011
IT IS A PENALTY. AND WILL NOT BE ALLOWED
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