https://www.taxtmi.com/caselaws?id=21935 Interest credited on provident fund monies earlier diverted for the assessee's own business was treated as deductible business expenditure because the payment was compensatory, aimed at restoring propriety, preserving employee goodwill, and protecting business interests. The court noted that the assessee had benefited from use of the fund and was required to compensate it for that use; the liability became ascertained only when the board quantified and approved the credit in the relevant accounting year. The disallowance was therefore unsustainable and the deduction was allowed. en-us Tue, 21 Jan 1992 00:00:00 +0530 Fri, 04 Dec 2009 12:52:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21935 Interest credited on provident fund monies earlier diverted for the assessee's own business was treated as deductible business expenditure because the payment was compensatory, aimed at restoring propriety, preserving employee goodwill, and protecting business interests. The court noted that the assessee had benefited from use of the fund and was required to compensate it for that use; the liability became ascertained only when the board quantified and approved the credit in the relevant accounting year. The disallowance was therefore unsustainable and the deduction was allowed. Case-Laws Income Tax Tue, 21 Jan 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21935