https://www.taxtmi.com/caselaws?id=235693 The High Court upheld the ITAT's decision to allow the encashment of a bank guarantee as business expenditure under section 37(1) of the Income Tax Act. The Court determined that the encashment was compensatory in nature, following precedents and emphasizing the need for payments to be wholly compensatory to qualify for deduction. The High Court dismissed the Revenue's appeal, finding no substantial question of law to overturn the ITAT's ruling, thereby affirming the allowance of the encashment as deductible business expenditure. en-us Tue, 09 Jul 2013 00:00:00 +0530 Wed, 31 Jul 2013 10:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235693 The High Court upheld the ITAT's decision to allow the encashment of a bank guarantee as business expenditure under section 37(1) of the Income Tax Act. The Court determined that the encashment was compensatory in nature, following precedents and emphasizing the need for payments to be wholly compensatory to qualify for deduction. The High Court dismissed the Revenue's appeal, finding no substantial question of law to overturn the ITAT's ruling, thereby affirming the allowance of the encashment as deductible business expenditure. Case-Laws Income Tax Tue, 09 Jul 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235693