https://www.taxtmi.com/caselaws?id=5438 Payments made under a statutory control order and bond, where the scheme itself gave an option to comply with production or export requirements or pay the prescribed amount in lieu of shortfall, were not penalties or amounts akin to penalty. The controlling test was the substance of the scheme and the true nature of the payment: because the amount was paid in obedience to an alternative permitted by law, it was incurred in the course of business and wholly and exclusively for business purposes. The payments were therefore deductible as business expenditure under section 37 of the Income-tax Act, 1961. en-us Fri, 15 Oct 1993 00:00:00 +0530 Mon, 24 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5438 Payments made under a statutory control order and bond, where the scheme itself gave an option to comply with production or export requirements or pay the prescribed amount in lieu of shortfall, were not penalties or amounts akin to penalty. The controlling test was the substance of the scheme and the true nature of the payment: because the amount was paid in obedience to an alternative permitted by law, it was incurred in the course of business and wholly and exclusively for business purposes. The payments were therefore deductible as business expenditure under section 37 of the Income-tax Act, 1961. Case-Laws Income Tax Fri, 15 Oct 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5438