https://www.taxtmi.com/caselaws?id=28784 The High Court held that the sum paid by the assessee to the Government was deductible under the Income-tax Act, 1961 as it was considered damages for a contractual breach, not a penalty. The payment was connected to the business of the assessee and was not against public policy or statutory obligations. The Court emphasized that the payment was incidental to the business and qualified as a deductible business expenditure. The Court directed the Commissioner to pay the costs of the reference to the assessee. en-us Wed, 07 Apr 1982 00:00:00 +0530 Thu, 25 Feb 2010 16:00:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28784 The High Court held that the sum paid by the assessee to the Government was deductible under the Income-tax Act, 1961 as it was considered damages for a contractual breach, not a penalty. The payment was connected to the business of the assessee and was not against public policy or statutory obligations. The Court emphasized that the payment was incidental to the business and qualified as a deductible business expenditure. The Court directed the Commissioner to pay the costs of the reference to the assessee. Case-Laws Income Tax Wed, 07 Apr 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28784