https://www.taxtmi.com/caselaws?id=331127 The court ruled in favor of the assessee, holding that the payment of Rs. 12,50,000/- was compensatory and, therefore, an allowable business expenditure under Section 37 of the Income Tax Act, 1961. The court distinguished between compensatory and punitive payments, emphasizing that the payment in question aimed at addressing environmental damage and was not a penalty for an offense. As a result, the court set aside the Tribunal's decision, allowing the appeal. en-us Tue, 19 Jul 2016 00:00:00 +0530 Thu, 17 Nov 2016 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331127 The court ruled in favor of the assessee, holding that the payment of Rs. 12,50,000/- was compensatory and, therefore, an allowable business expenditure under Section 37 of the Income Tax Act, 1961. The court distinguished between compensatory and punitive payments, emphasizing that the payment in question aimed at addressing environmental damage and was not a penalty for an offense. As a result, the court set aside the Tribunal's decision, allowing the appeal. Case-Laws Income Tax Tue, 19 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331127