https://www.taxtmi.com/caselaws?id=289989 The Tribunal upheld the CIT(A)'s decision allowing the deduction of late delivery charges as a business expense for A.Y. 2006-07 under section 37(1) of the Income Tax Act, 1961. It differentiated between penalties for breach of law and compensatory charges for late delivery, ruling that the latter were permissible. The Tribunal found the charges compensatory in nature due to breach of contractual obligations, affirming that they were inherent risks in business operations. Consequently, the Tribunal dismissed the Revenue's appeal, affirming that the late delivery charges were deductible as a business expense. en-us Fri, 23 Dec 2011 00:00:00 +0530 Wed, 02 Sep 2020 13:02:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289989 The Tribunal upheld the CIT(A)'s decision allowing the deduction of late delivery charges as a business expense for A.Y. 2006-07 under section 37(1) of the Income Tax Act, 1961. It differentiated between penalties for breach of law and compensatory charges for late delivery, ruling that the latter were permissible. The Tribunal found the charges compensatory in nature due to breach of contractual obligations, affirming that they were inherent risks in business operations. Consequently, the Tribunal dismissed the Revenue's appeal, affirming that the late delivery charges were deductible as a business expense. Case-Laws Income Tax Fri, 23 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289989