https://www.taxtmi.com/caselaws?id=63667 Damages paid to the Delhi Development Authority for wrongful use and occupation of business premises were treated as compensation, not a penalty or fine, because the liability arose under an Estate Officer's order under the Public Premises (Eviction of Unauthorised Occupation) Act. The payment was held allowable as business expenditure since it was incurred wholly and exclusively for business purposes. The fact that the compensation related to an earlier period did not, by itself, defeat the claim, as the character of the payment had to be determined by its true nature rather than its label. The disallowance was therefore not justified. en-us Thu, 06 Feb 1986 00:00:00 +0530 Tue, 01 Feb 2011 12:47:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=63667 Damages paid to the Delhi Development Authority for wrongful use and occupation of business premises were treated as compensation, not a penalty or fine, because the liability arose under an Estate Officer's order under the Public Premises (Eviction of Unauthorised Occupation) Act. The payment was held allowable as business expenditure since it was incurred wholly and exclusively for business purposes. The fact that the compensation related to an earlier period did not, by itself, defeat the claim, as the character of the payment had to be determined by its true nature rather than its label. The disallowance was therefore not justified. Case-Laws Income Tax Thu, 06 Feb 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=63667