https://www.taxtmi.com/caselaws?id=446768 The Tribunal ruled in favor of the assessee, allowing the appeal and deleting the Rs. 1 crore addition made by the Assessing Officer. The Tribunal determined that the expenditure was a result of commercial activity and not a penal offense, thus not disallowable under Explanation 1 to Section 37. The CIT(A)'s decision to uphold the disallowance was overturned, supporting the assessee's argument that the payment was due to technical shortcomings rather than an offense or prohibited act. en-us Fri, 13 Oct 2023 00:00:00 +0530 Mon, 11 Dec 2023 08:59:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446768 The Tribunal ruled in favor of the assessee, allowing the appeal and deleting the Rs. 1 crore addition made by the Assessing Officer. The Tribunal determined that the expenditure was a result of commercial activity and not a penal offense, thus not disallowable under Explanation 1 to Section 37. The CIT(A)'s decision to uphold the disallowance was overturned, supporting the assessee's argument that the payment was due to technical shortcomings rather than an offense or prohibited act. Case-Laws Income Tax Fri, 13 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446768