https://www.taxtmi.com/caselaws?id=120300 A municipal contribution for sewerage connection and drainage improvements was treated as revenue expenditure because it secured better business without creating a new asset. A payment made to regularise an unauthorised factory extension was treated as a penalty linked to a regulatory infraction and was disallowed under the Explanation to section 37(1). A separate payment for condonation of open-space deficiency was not regarded as a penalty, because it arose from municipal regularisation under the development control scheme; however, its capital or revenue character required fresh examination on remand. en-us Mon, 16 Jan 2006 00:00:00 +0530 Wed, 18 Jul 2012 12:53:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120300 A municipal contribution for sewerage connection and drainage improvements was treated as revenue expenditure because it secured better business without creating a new asset. A payment made to regularise an unauthorised factory extension was treated as a penalty linked to a regulatory infraction and was disallowed under the Explanation to section 37(1). A separate payment for condonation of open-space deficiency was not regarded as a penalty, because it arose from municipal regularisation under the development control scheme; however, its capital or revenue character required fresh examination on remand. Case-Laws Income Tax Mon, 16 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120300