https://www.taxtmi.com/caselaws?id=27293 Expenditure actually incurred wholly and exclusively for business remains deductible under section 37(1) even if the payment exceeds a governmental rate or contravenes another law, so long as it is otherwise within the income-tax statute. The Rajasthan High Court applied the principle that deductibility depends on real business expenditure, not on the validity, prudence, or regulatory conformity of the underlying transaction. Because the assessee had in fact paid the higher pressing charges during the accounting year, the later refund did not alter the character of the payment for that year. The deduction was therefore allowable, and the contrary view of the Tribunal was incorrect. en-us Fri, 18 Jan 1985 00:00:00 +0530 Fri, 12 Feb 2010 10:17:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27293 Expenditure actually incurred wholly and exclusively for business remains deductible under section 37(1) even if the payment exceeds a governmental rate or contravenes another law, so long as it is otherwise within the income-tax statute. The Rajasthan High Court applied the principle that deductibility depends on real business expenditure, not on the validity, prudence, or regulatory conformity of the underlying transaction. Because the assessee had in fact paid the higher pressing charges during the accounting year, the later refund did not alter the character of the payment for that year. The deduction was therefore allowable, and the contrary view of the Tribunal was incorrect. Case-Laws Income Tax Fri, 18 Jan 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27293