https://www.taxtmi.com/caselaws?id=11412 Deductibility under section 37(1) for redemption fine, penalty and related litigation expenses depends on the real character of the payment, not its label. The statutory scheme governing confiscation, option to pay fine in lieu of confiscation, and penalty under the Central Excise law must be examined to determine whether the impost is compensatory or penal in substance before allowing a business deduction. Prior authorities had not undertaken that analysis, so the matter was remanded for fresh adjudication and no final view on deductibility was reached. en-us Thu, 21 Aug 2003 00:00:00 +0530 Sat, 08 Aug 2009 09:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11412 Deductibility under section 37(1) for redemption fine, penalty and related litigation expenses depends on the real character of the payment, not its label. The statutory scheme governing confiscation, option to pay fine in lieu of confiscation, and penalty under the Central Excise law must be examined to determine whether the impost is compensatory or penal in substance before allowing a business deduction. Prior authorities had not undertaken that analysis, so the matter was remanded for fresh adjudication and no final view on deductibility was reached. Case-Laws Income Tax Thu, 21 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11412