https://www.taxtmi.com/caselaws?id=19511 Redemption fine paid to customs authorities was held compensatory, because the statutory scheme showed it was paid to redeem confiscated goods and continue the trading transaction rather than to punish an infraction of law; it was therefore deductible under section 37(1) of the Income-tax Act. Advocate's fees incurred to defend the customs proceedings were also allowable, as they were incidental to protecting the business interest in the imported goods. The contention that the redemption fine was merely an additional duty was rejected, since the true test is the real nature of the impost, not the label attached to it. en-us Fri, 29 Apr 1994 00:00:00 +0530 Fri, 06 Nov 2009 16:30:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19511 Redemption fine paid to customs authorities was held compensatory, because the statutory scheme showed it was paid to redeem confiscated goods and continue the trading transaction rather than to punish an infraction of law; it was therefore deductible under section 37(1) of the Income-tax Act. Advocate's fees incurred to defend the customs proceedings were also allowable, as they were incidental to protecting the business interest in the imported goods. The contention that the redemption fine was merely an additional duty was rejected, since the true test is the real nature of the impost, not the label attached to it. Case-Laws Income Tax Fri, 29 Apr 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19511