https://www.taxtmi.com/caselaws?id=12910 Damages paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 for delayed provident fund contributions are deductible under section 37(1) of the Income-tax Act, 1961 only to the extent they are compensatory. The real character of the impost, not the statutory label, governs deductibility, and a levy containing both penal and compensatory elements requires examination of the provident fund scheme and relevant facts before any allowance is granted. The Madras HC held that only the compensatory component, as determined by the Income-tax Officer, could be deducted, and the Tribunal erred in allowing the full amount without that enquiry. en-us Wed, 22 Nov 2000 00:00:00 +0530 Fri, 22 May 2009 18:58:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12910 Damages paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 for delayed provident fund contributions are deductible under section 37(1) of the Income-tax Act, 1961 only to the extent they are compensatory. The real character of the impost, not the statutory label, governs deductibility, and a levy containing both penal and compensatory elements requires examination of the provident fund scheme and relevant facts before any allowance is granted. The Madras HC held that only the compensatory component, as determined by the Income-tax Officer, could be deducted, and the Tribunal erred in allowing the full amount without that enquiry. Case-Laws Income Tax Wed, 22 Nov 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12910