https://www.taxtmi.com/caselaws?id=7945 A penalty recovered for supplying paddy not according to specification was treated as a business loss because it arose directly from performance of the assessee's contractual trading activity and was integrally connected with the carrying on of the business. The proper inquiry was under section 10(1) in computing business profits, not as a deduction under section 10(2)(xv). The amount was therefore allowable in business income, even though it was not deductible as expenditure under section 10(2)(xv). en-us Tue, 17 Feb 1970 00:00:00 +0530 Thu, 26 Mar 2009 09:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7945 A penalty recovered for supplying paddy not according to specification was treated as a business loss because it arose directly from performance of the assessee's contractual trading activity and was integrally connected with the carrying on of the business. The proper inquiry was under section 10(1) in computing business profits, not as a deduction under section 10(2)(xv). The amount was therefore allowable in business income, even though it was not deductible as expenditure under section 10(2)(xv). Case-Laws Income Tax Tue, 17 Feb 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7945