https://www.taxtmi.com/caselaws?id=123001 The Tribunal allowed the appeal, determining that the payment made by the assessee to settle a patent infringement dispute was a legitimate business expenditure and not a penalty for an offense. The Tribunal found that the payment was made out of commercial expediency to avoid litigation costs, emphasizing that there was no court finding of patent infringement against the assessee. Therefore, the payment was considered compensatory and allowable as a deduction under section 37(1) of the Income-tax Act, 1961. en-us Fri, 24 Sep 2010 00:00:00 +0530 Mon, 27 Aug 2012 11:43:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=123001 The Tribunal allowed the appeal, determining that the payment made by the assessee to settle a patent infringement dispute was a legitimate business expenditure and not a penalty for an offense. The Tribunal found that the payment was made out of commercial expediency to avoid litigation costs, emphasizing that there was no court finding of patent infringement against the assessee. Therefore, the payment was considered compensatory and allowable as a deduction under section 37(1) of the Income-tax Act, 1961. Case-Laws Income Tax Fri, 24 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=123001