https://www.taxtmi.com/caselaws?id=375094 The SC upheld the decision of the Tribunal and Commissioner of Income Tax (Appeals) to disallow the addition of Rs. 23,19,547 as expenditure by the Assessing Officer. The expenditure incurred for penal charges lacked commercial expediency as there was no direct agreement between the assessee and the supplier, M/s Cargill India Pvt. Ltd. The absence of contractual obligations and direct benefit to the trade led to the rejection of the appeal, emphasizing the significance of contractual agreements in justifying business expenditures for income tax purposes. en-us Fri, 18 Jan 2019 00:00:00 +0530 Thu, 14 Feb 2019 06:20:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=375094 The SC upheld the decision of the Tribunal and Commissioner of Income Tax (Appeals) to disallow the addition of Rs. 23,19,547 as expenditure by the Assessing Officer. The expenditure incurred for penal charges lacked commercial expediency as there was no direct agreement between the assessee and the supplier, M/s Cargill India Pvt. Ltd. The absence of contractual obligations and direct benefit to the trade led to the rejection of the appeal, emphasizing the significance of contractual agreements in justifying business expenditures for income tax purposes. Case-Laws Income Tax Fri, 18 Jan 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=375094