https://www.taxtmi.com/caselaws?id=26538 A customs penalty paid by an assessee for importing goods in breach of its own licence conditions was not deductible in computing business income under section 28 of the Income-tax Act, 1961. The High Court treated the payment as a penalty for the assessee's own default, not as part of the cost of goods or an amount incurred on behalf of another party. The fact that the sale price was fixed after taking the penalty into account did not change the character of the payment. The penalty was therefore held to be nondeductible, and the issue was decided in favour of the Revenue. en-us Thu, 12 Sep 1985 00:00:00 +0530 Fri, 05 Feb 2010 16:28:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26538 A customs penalty paid by an assessee for importing goods in breach of its own licence conditions was not deductible in computing business income under section 28 of the Income-tax Act, 1961. The High Court treated the payment as a penalty for the assessee's own default, not as part of the cost of goods or an amount incurred on behalf of another party. The fact that the sale price was fixed after taking the penalty into account did not change the character of the payment. The penalty was therefore held to be nondeductible, and the issue was decided in favour of the Revenue. Case-Laws Income Tax Thu, 12 Sep 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26538