https://www.taxtmi.com/caselaws?id=168629 Liquidated damages paid for breach of an export obligation were held not deductible as business expenditure under section 10(2)(xv). The court reasoned that the liability was only contingent during the relevant accounting year and became ascertainable only when the claim was later asserted and quantified, so it could not be deducted in the earlier year. It also found that the payment was not laid out wholly and exclusively for business, because the breach was a departure from statutory and contractual controls over export sales and was akin to a penalty for infraction of a regulatory obligation. en-us Fri, 01 Feb 1957 00:00:00 +0530 Wed, 18 Mar 2015 12:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168629 Liquidated damages paid for breach of an export obligation were held not deductible as business expenditure under section 10(2)(xv). The court reasoned that the liability was only contingent during the relevant accounting year and became ascertainable only when the claim was later asserted and quantified, so it could not be deducted in the earlier year. It also found that the payment was not laid out wholly and exclusively for business, because the breach was a departure from statutory and contractual controls over export sales and was akin to a penalty for infraction of a regulatory obligation. Case-Laws Income Tax Fri, 01 Feb 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168629