https://www.taxtmi.com/caselaws?id=36758 Payments made for breach of contractual obligations in the course of a contracting business were held to be deductible because they arose from delays and risks incidental to business operations. The court applied the principle that a commercial loss or expenditure incurred in carrying on and earning business profits is allowable, while a penalty for breach of law is not. On the facts found, the disputed amounts were not paid for any legal infraction but for contractual breaches inherent in the business, so they constituted allowable business loss or expenditure. en-us Tue, 23 Jan 1979 00:00:00 +0530 Wed, 24 Mar 2010 12:54:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36758 Payments made for breach of contractual obligations in the course of a contracting business were held to be deductible because they arose from delays and risks incidental to business operations. The court applied the principle that a commercial loss or expenditure incurred in carrying on and earning business profits is allowable, while a penalty for breach of law is not. On the facts found, the disputed amounts were not paid for any legal infraction but for contractual breaches inherent in the business, so they constituted allowable business loss or expenditure. Case-Laws Income Tax Tue, 23 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36758