https://www.taxtmi.com/caselaws?id=204096 Compounding fees paid to the Regional Transport Office for transporting over-dimensional consignments were treated as ordinary business expenditure under section 37(1) because they were incurred routinely in the course of the transport business and were collected as compounding charges at the check post, not as a consequence of seizure or prosecution. The expenditure was held not to be penal in character and not paid for an infraction of law. The disallowance was therefore unsustainable, and the deduction was allowed. en-us Wed, 30 Mar 2011 00:00:00 +0530 Thu, 30 Jun 2011 13:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204096 Compounding fees paid to the Regional Transport Office for transporting over-dimensional consignments were treated as ordinary business expenditure under section 37(1) because they were incurred routinely in the course of the transport business and were collected as compounding charges at the check post, not as a consequence of seizure or prosecution. The expenditure was held not to be penal in character and not paid for an infraction of law. The disallowance was therefore unsustainable, and the deduction was allowed. Case-Laws Income Tax Wed, 30 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204096