https://www.taxtmi.com/caselaws?id=33599 The High Court upheld the Income-tax Appellate Tribunal's decision to allow the deduction claimed by the assessee for a fine paid to the Excise Department for belated payment of excise duty instalment. The Court considered the payment as a legitimate business expense, akin to compensation rather than a penalty for breach of law, following the principle that such payments should be allowed as expenditures regardless of labeling. The Court distinguished between penalties for breach of law and compensatory fines, ultimately ruling in favor of the assessee and disposing of the reference in their favor. en-us Wed, 18 Oct 2006 00:00:00 +0530 Thu, 28 May 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33599 The High Court upheld the Income-tax Appellate Tribunal's decision to allow the deduction claimed by the assessee for a fine paid to the Excise Department for belated payment of excise duty instalment. The Court considered the payment as a legitimate business expense, akin to compensation rather than a penalty for breach of law, following the principle that such payments should be allowed as expenditures regardless of labeling. The Court distinguished between penalties for breach of law and compensatory fines, ultimately ruling in favor of the assessee and disposing of the reference in their favor. Case-Laws Income Tax Wed, 18 Oct 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33599