https://www.taxtmi.com/caselaws?id=346503 An amount recovered under an excise bond for non-receipt of delivery verification was compensatory, not punitive, because it arose from the assessee's contractual undertaking to indemnify the Revenue for duty loss and was computed at the applicable duty rate. No separate statutory penalty under the Rajasthan Excise Act, 1950 or the Rajasthan Excise Rules, 1956 had been imposed, and the amount exceeded the maximum penal consequence under those provisions. Applying section 37(1) of the Income-tax Act, 1961, the real character of the impost controlled deductibility, so the payment was allowable as business expenditure and the disallowance was deleted. en-us Mon, 31 Jul 2017 00:00:00 +0530 Fri, 25 Aug 2017 13:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=346503 An amount recovered under an excise bond for non-receipt of delivery verification was compensatory, not punitive, because it arose from the assessee's contractual undertaking to indemnify the Revenue for duty loss and was computed at the applicable duty rate. No separate statutory penalty under the Rajasthan Excise Act, 1950 or the Rajasthan Excise Rules, 1956 had been imposed, and the amount exceeded the maximum penal consequence under those provisions. Applying section 37(1) of the Income-tax Act, 1961, the real character of the impost controlled deductibility, so the payment was allowable as business expenditure and the disallowance was deleted. Case-Laws Income Tax Mon, 31 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=346503