https://www.taxtmi.com/caselaws?id=280160 Payments described as liquidated damages for extending a supply contract were held to be allowable business deductions because they were not penalties for breach, but commercial expenditure incurred to keep the contract alive and enable completion. The payment was directly connected with carrying on the business and was made on grounds of commercial expediency, so the sums were deductible under section 10(2)(xv) of the Indian Income-tax Act. en-us Thu, 19 Mar 1964 00:00:00 +0530 Tue, 23 Apr 2019 16:00:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=280160 Payments described as liquidated damages for extending a supply contract were held to be allowable business deductions because they were not penalties for breach, but commercial expenditure incurred to keep the contract alive and enable completion. The payment was directly connected with carrying on the business and was made on grounds of commercial expediency, so the sums were deductible under section 10(2)(xv) of the Indian Income-tax Act. Case-Laws Income Tax Thu, 19 Mar 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=280160