https://www.taxtmi.com/caselaws?id=6596 The ruling determined that the amount refunded by the applicant to another company as a waiver of liquidated damages was not an allowable deduction from its business income under the Income Tax Act for the assessment year 2002-03. The liquidated damages were considered capital in nature, not revenue, and therefore did not qualify as a deductible business expense under section 37(1) or any other provisions of the Act. The decision was based on the capital nature of the damages recovered and the lack of voluntariness in the refund process. en-us Wed, 06 Sep 2006 00:00:00 +0530 Thu, 15 Jan 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6596 The ruling determined that the amount refunded by the applicant to another company as a waiver of liquidated damages was not an allowable deduction from its business income under the Income Tax Act for the assessment year 2002-03. The liquidated damages were considered capital in nature, not revenue, and therefore did not qualify as a deductible business expense under section 37(1) or any other provisions of the Act. The decision was based on the capital nature of the damages recovered and the lack of voluntariness in the refund process. Case-Laws Income Tax Wed, 06 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6596