https://www.taxtmi.com/caselaws?id=359789 A payment made to the State Excise Authority was held deductible under section 37(1) because its true character was excise duty paid in discharge of a business obligation, not a penalty for infraction of law. The court looked beyond the label in the demand notice and found that no statutory penalty had been imposed under the Rajasthan Excise Act, 1950 or the Rajasthan Excise Rules, 1956. Since the amount matched excise duty at the notified rate and was compensatory rather than penal, it was incurred in the ordinary course of business and the disallowance was rightly deleted. en-us Tue, 20 Feb 2018 00:00:00 +0530 Fri, 04 May 2018 08:51:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=359789 A payment made to the State Excise Authority was held deductible under section 37(1) because its true character was excise duty paid in discharge of a business obligation, not a penalty for infraction of law. The court looked beyond the label in the demand notice and found that no statutory penalty had been imposed under the Rajasthan Excise Act, 1950 or the Rajasthan Excise Rules, 1956. Since the amount matched excise duty at the notified rate and was compensatory rather than penal, it was incurred in the ordinary course of business and the disallowance was rightly deleted. Case-Laws Income Tax Tue, 20 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=359789