https://www.taxtmi.com/caselaws?id=423281 ITAT Delhi held that fine paid under section 125(1) of Customs Act 1962 for redemption of confiscated goods is compensatory in nature and allowable as expenditure under section 37(1) of Income Tax Act. The assessee imported digital printers without DGFT license, leading to confiscation and option to redeem goods by paying fine. However, penalty imposed under section 112(a) of Customs Act is penal in nature and inadmissible expenditure. The tribunal distinguished between compensatory fine (allowable) and penal penalty (disallowed), deciding partly in favor of assessee. en-us Tue, 31 May 2022 00:00:00 +0530 Fri, 20 Jun 2025 18:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=423281 ITAT Delhi held that fine paid under section 125(1) of Customs Act 1962 for redemption of confiscated goods is compensatory in nature and allowable as expenditure under section 37(1) of Income Tax Act. The assessee imported digital printers without DGFT license, leading to confiscation and option to redeem goods by paying fine. However, penalty imposed under section 112(a) of Customs Act is penal in nature and inadmissible expenditure. The tribunal distinguished between compensatory fine (allowable) and penal penalty (disallowed), deciding partly in favor of assessee. Case-Laws Income Tax Tue, 31 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=423281