https://www.taxtmi.com/caselaws?id=389146 The Tribunal upheld the decision of the CIT(A) in allowing the deduction of the penalty amount under section 37(1) of the Income Tax Act, 1961, ruling that the penalty was compensatory in nature and not a violation of the law, as the appellant's failure to meet contractual obligations did not constitute a legal offense. The Revenue's appeal challenging this decision was dismissed, affirming that the penalty was deductible as per relevant legal precedents. en-us Wed, 27 Nov 2019 00:00:00 +0530 Fri, 17 Jan 2020 17:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=389146 The Tribunal upheld the decision of the CIT(A) in allowing the deduction of the penalty amount under section 37(1) of the Income Tax Act, 1961, ruling that the penalty was compensatory in nature and not a violation of the law, as the appellant's failure to meet contractual obligations did not constitute a legal offense. The Revenue's appeal challenging this decision was dismissed, affirming that the penalty was deductible as per relevant legal precedents. Case-Laws Income Tax Wed, 27 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=389146