https://www.taxtmi.com/caselaws?id=15337 The Tribunal held that the penalty paid by the assessee under section 10A of the Central Sales Tax Act is deductible as business expenditure. The Supreme Court emphasized that penalties with a compensatory element can be considered as such. As the penalty in this case was based on the difference between actual and proper tax rates, it was deemed compensatory rather than purely penal. Consequently, the revenue's challenge was decided in favor of the assessee, permitting the deduction of the penalty paid under section 10A, with the assessee also awarded costs of Rs. 1,000. en-us Tue, 24 Nov 1998 00:00:00 +0530 Mon, 09 Dec 2013 18:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15337 The Tribunal held that the penalty paid by the assessee under section 10A of the Central Sales Tax Act is deductible as business expenditure. The Supreme Court emphasized that penalties with a compensatory element can be considered as such. As the penalty in this case was based on the difference between actual and proper tax rates, it was deemed compensatory rather than purely penal. Consequently, the revenue's challenge was decided in favor of the assessee, permitting the deduction of the penalty paid under section 10A, with the assessee also awarded costs of Rs. 1,000. Case-Laws Income Tax Tue, 24 Nov 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15337