https://www.taxtmi.com/caselaws?id=16914 Damages paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act have a dual character: the compensatory element may be deducted as business expenditure, but the penal element is not allowable. The Court applied the principle that a statutory impost containing both compensation and penalty must be apportioned accordingly, and held that liability arising from default in timely payment does not constitute an ordinary business outgoing. Only the compensatory portion is deductible, while the penal portion must be disallowed. en-us Thu, 02 Jan 1997 00:00:00 +0530 Mon, 14 Sep 2009 10:43:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16914 Damages paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act have a dual character: the compensatory element may be deducted as business expenditure, but the penal element is not allowable. The Court applied the principle that a statutory impost containing both compensation and penalty must be apportioned accordingly, and held that liability arising from default in timely payment does not constitute an ordinary business outgoing. Only the compensatory portion is deductible, while the penal portion must be disallowed. Case-Laws Income Tax Thu, 02 Jan 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16914