https://www.taxtmi.com/caselaws?id=21737 Penalties paid for delayed payment of cane cess and cane purchase tax under the U.P. Sugarcane Cess Act, 1956 and the U.P. Sugarcane (Purchase Tax) Act, 1961 were treated as amounts arising from breach of law, not as normal business outgoings. Deductibility under the Income-tax Act requires expenditure to be incidental to business and laid out wholly and exclusively for business purposes. A payment made for contravention of statutory obligations is not a commercial loss or allowable revenue expenditure. Such penalties were therefore not deductible in computing business income. en-us Tue, 16 Apr 1991 00:00:00 +0530 Fri, 27 Nov 2009 13:28:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21737 Penalties paid for delayed payment of cane cess and cane purchase tax under the U.P. Sugarcane Cess Act, 1956 and the U.P. Sugarcane (Purchase Tax) Act, 1961 were treated as amounts arising from breach of law, not as normal business outgoings. Deductibility under the Income-tax Act requires expenditure to be incidental to business and laid out wholly and exclusively for business purposes. A payment made for contravention of statutory obligations is not a commercial loss or allowable revenue expenditure. Such penalties were therefore not deductible in computing business income. Case-Laws Income Tax Tue, 16 Apr 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21737