https://www.taxtmi.com/caselaws?id=190154 The court held that the payment of Rs. 50,71,328 by the appellant company to UTI Bank Ltd. was considered a dividend and not a deductible business expense under the Income-tax Act, 1961. The court concluded that the payment, characterized as liquidated damages, was in fact a discharge of the liability to pay the agreed dividend under the contract. Therefore, the appeal was dismissed, upholding the decisions of the lower authorities that the payment constituted a dividend and was not allowable as a deductible expenditure. en-us Tue, 12 Apr 2016 00:00:00 +0530 Wed, 08 Feb 2017 09:40:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190154 The court held that the payment of Rs. 50,71,328 by the appellant company to UTI Bank Ltd. was considered a dividend and not a deductible business expense under the Income-tax Act, 1961. The court concluded that the payment, characterized as liquidated damages, was in fact a discharge of the liability to pay the agreed dividend under the contract. Therefore, the appeal was dismissed, upholding the decisions of the lower authorities that the payment constituted a dividend and was not allowable as a deductible expenditure. Case-Laws Income Tax Tue, 12 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190154