Deductibility for charitable donations affirmed where payments to approved relief funds, even if CSR-driven, qualify under the donation deduction sche...
Mis-declaration in import descriptions must be deliberate to justify confiscation; withheld contemporaneous import documents invalidate value redeterm...
Liability for EPCG export shortfall: duty and interest sustained, but confiscation and penalties quashed where no fraud and causes beyond importer con...
Allowability of contractual damages claimed as expenses under section 37 was decided by ITAT: the Tribunal held that sums deducted by the government for late supply were compensatory damages for breach of contract and not payments for an "offence" or activity prohibited by law, so Explanation to section 37 did not apply. The Tribunal reasoned that mere failure to meet contractual timelines does not constitute a crime; the payments were incurred wholly and exclusively for business and therefore deductible as business expenditure, allowing the appeal and setting aside the disallowance.
Allowability of contractual damages claimed as expenses under section 37 was decided by ITAT: the Tribunal held that sums deducted by the government for late supply were compensatory damages for breach of contract and not payments for an "offence" or activity prohibited by law, so Explanation to section 37 did not apply. The Tribunal reasoned that mere failure to meet contractual timelines does not constitute a crime; the payments were incurred wholly and exclusively for business and therefore deductible as business expenditure, allowing the appeal and setting aside the disallowance.
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