https://www.taxtmi.com/caselaws?id=26491 The High Court held in favor of the assessee, ruling that the payment made to the Gun Carriage Factory (G.C.F.) was a permissible business expenditure under section 37(1) of the Income-tax Act, 1961. The court emphasized that the payment was made under the terms of a contract for the purpose of earning profits from the business of supplying goods, meeting the criteria set by the Supreme Court. The High Court distinguished previous decisions cited by the Tribunal and concluded that penalties or damages arising from breaches in the course of business were deductible as commercial losses. The judgment favored the assessee, with no costs awarded. en-us Thu, 29 Aug 1985 00:00:00 +0530 Fri, 05 Feb 2010 13:30:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26491 The High Court held in favor of the assessee, ruling that the payment made to the Gun Carriage Factory (G.C.F.) was a permissible business expenditure under section 37(1) of the Income-tax Act, 1961. The court emphasized that the payment was made under the terms of a contract for the purpose of earning profits from the business of supplying goods, meeting the criteria set by the Supreme Court. The High Court distinguished previous decisions cited by the Tribunal and concluded that penalties or damages arising from breaches in the course of business were deductible as commercial losses. The judgment favored the assessee, with no costs awarded. Case-Laws Income Tax Thu, 29 Aug 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26491