https://www.taxtmi.com/caselaws?id=20971 Where a control order allows a producer to pay a prescribed amount in lieu of meeting a production requirement, the payment is a permitted mode of compliance and not a penalty for breach of law. The Bombay HC held that the amount paid under clause 21C(1)(b) of the Cotton Textiles (Control) Order, 1948 did not attract penal consequences and was incurred in the course of business as an incident of commercial operations. It was therefore laid out wholly and exclusively for business purposes and was deductible under section 37 of the Income-tax Act, 1961. en-us Wed, 02 Feb 1983 00:00:00 +0530 Wed, 18 Nov 2009 13:20:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20971 Where a control order allows a producer to pay a prescribed amount in lieu of meeting a production requirement, the payment is a permitted mode of compliance and not a penalty for breach of law. The Bombay HC held that the amount paid under clause 21C(1)(b) of the Cotton Textiles (Control) Order, 1948 did not attract penal consequences and was incurred in the course of business as an incident of commercial operations. It was therefore laid out wholly and exclusively for business purposes and was deductible under section 37 of the Income-tax Act, 1961. Case-Laws Income Tax Wed, 02 Feb 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20971