https://www.taxtmi.com/caselaws?id=22940 Damages paid for breach of a business supply contract were treated as business expenditure where the liability arose from a commercial transaction entered into in the ordinary course of business. The assessee's failure to supply material within the stipulated time gave rise to the buyer's damages claim, and the expenditure was held to have a direct nexus with the business contract and the assessee's non-performance. Such liability was not outside the scope of allowable business expenditure merely because it took the form of damages, and the claim was allowable as incidental to the carrying on of the business. en-us Wed, 22 Aug 1990 00:00:00 +0530 Tue, 15 Dec 2009 14:14:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22940 Damages paid for breach of a business supply contract were treated as business expenditure where the liability arose from a commercial transaction entered into in the ordinary course of business. The assessee's failure to supply material within the stipulated time gave rise to the buyer's damages claim, and the expenditure was held to have a direct nexus with the business contract and the assessee's non-performance. Such liability was not outside the scope of allowable business expenditure merely because it took the form of damages, and the claim was allowable as incidental to the carrying on of the business. Case-Laws Income Tax Wed, 22 Aug 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22940