https://www.taxtmi.com/caselaws?id=326539 The appeal by the revenue challenging the deletion of a penalty for breach of contract by the Income Tax Appellate Tribunal was dismissed. The Tribunal held that the penalty was compensatory, not penal, and therefore deductible under section 37 of the Income Tax Act. Citing the Supreme Court decision in Prakash Cotton Mills P. Ltd. v. CIT, the Tribunal found no legal infirmity in its decision. As a result, the penalty amount of Rs. 65,52,000 added by the Assessing Officer was deleted from the assessee's total income. en-us Wed, 06 Apr 2016 00:00:00 +0530 Mon, 18 Apr 2016 08:15:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326539 The appeal by the revenue challenging the deletion of a penalty for breach of contract by the Income Tax Appellate Tribunal was dismissed. The Tribunal held that the penalty was compensatory, not penal, and therefore deductible under section 37 of the Income Tax Act. Citing the Supreme Court decision in Prakash Cotton Mills P. Ltd. v. CIT, the Tribunal found no legal infirmity in its decision. As a result, the penalty amount of Rs. 65,52,000 added by the Assessing Officer was deleted from the assessee's total income. Case-Laws Income Tax Wed, 06 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326539