Deductibility under section 37: payments for non-fulfilment of production quota treated as business expense and allowable. Payments made by producers in lieu of non-fulfilment of prescribed production quotas are not penalties but business options exercised due to business exigencies and are allowable as deduction under section 37; the Board directed withdrawal or concession of pending appeals and instructed Commissioners to withdraw or concede such matters, noting the Gujarat High Court decision as sound in law.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deductibility under section 37: payments for non-fulfilment of production quota treated as business expense and allowable.
Payments made by producers in lieu of non-fulfilment of prescribed production quotas are not penalties but business options exercised due to business exigencies and are allowable as deduction under section 37; the Board directed withdrawal or concession of pending appeals and instructed Commissioners to withdraw or concede such matters, noting the Gujarat High Court decision as sound in law.
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