https://www.taxtmi.com/caselaws?id=193241 A penalty paid for supplying foodgrains below the prescribed F.A.Q. standard under a statutory control scheme was not deductible as business expenditure. The court applied the test of whether the payment was laid out wholly and exclusively for the purpose of business, and held that a sum imposed for breach of law or of a public-policy based regulatory regime is not a commercial loss incidental to trading. Because the payment was punitive, not a normal trading adjustment or price reduction, it was disallowed under section 10(2)(xv). en-us Tue, 22 Jan 1963 00:00:00 +0530 Wed, 19 Jul 2017 18:17:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193241 A penalty paid for supplying foodgrains below the prescribed F.A.Q. standard under a statutory control scheme was not deductible as business expenditure. The court applied the test of whether the payment was laid out wholly and exclusively for the purpose of business, and held that a sum imposed for breach of law or of a public-policy based regulatory regime is not a commercial loss incidental to trading. Because the payment was punitive, not a normal trading adjustment or price reduction, it was disallowed under section 10(2)(xv). Case-Laws Income Tax Tue, 22 Jan 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193241