CBDT Clarify on Non-Deductibility of Settlement Exp. u/s 37
Non-Deductibility of Settlement Expenses u/s 37 of the Income-tax Act, 1961 : CBDT Introduction Section 37 of the Income-tax Act, 1961, allows deduction of business or professional expenses incurred wholly and exclusively for business purposes. However, Explanation 1 disallows deduction for expenditures incurred for any purpose that is an offense or prohibited by law. Section 37 …