https://www.taxtmi.com/caselaws?id=36885 Demurrage paid to port authorities for delayed clearance of imported goods was treated as compensation for use of port facilities and storage, not as a penalty for breach of law. Because the goods were detained for non-conformity with the import licence, the payment was made to secure release and preserve stock-in-trade for the manufacturing business. The court held that the expenditure was incurred on grounds of commercial expediency and wholly and exclusively for business purposes, so it was deductible under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Mon, 06 Aug 1979 00:00:00 +0530 Thu, 25 Mar 2010 12:04:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36885 Demurrage paid to port authorities for delayed clearance of imported goods was treated as compensation for use of port facilities and storage, not as a penalty for breach of law. Because the goods were detained for non-conformity with the import licence, the payment was made to secure release and preserve stock-in-trade for the manufacturing business. The court held that the expenditure was incurred on grounds of commercial expediency and wholly and exclusively for business purposes, so it was deductible under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Mon, 06 Aug 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36885