https://www.taxtmi.com/caselaws?id=36420 Payments to the Textile Commissioner for breach of instructions were treated as not penal in nature and therefore deductible, following the Court's earlier ruling on the same point. Payments made under clause 21C(b) of the Cotton Textile (Control) Order, 1968 were likewise held to be allowable business expenditure on the same basis. For balancing allowance under section 32(1)(iii) of the Income-tax Act, a bona fide decision to discard a depreciable asset, coupled with an actual write-off of the deficiency in the books, satisfied the statutory conditions; the tax authorities could not replace the assessee's commercial judgment with their own view of expediency. The written-off bore-well amount was therefore allowable. en-us Fri, 29 Aug 1980 00:00:00 +0530 Mon, 22 Mar 2010 12:08:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36420 Payments to the Textile Commissioner for breach of instructions were treated as not penal in nature and therefore deductible, following the Court's earlier ruling on the same point. Payments made under clause 21C(b) of the Cotton Textile (Control) Order, 1968 were likewise held to be allowable business expenditure on the same basis. For balancing allowance under section 32(1)(iii) of the Income-tax Act, a bona fide decision to discard a depreciable asset, coupled with an actual write-off of the deficiency in the books, satisfied the statutory conditions; the tax authorities could not replace the assessee's commercial judgment with their own view of expediency. The written-off bore-well amount was therefore allowable. Case-Laws Income Tax Fri, 29 Aug 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36420