https://www.taxtmi.com/caselaws?id=36975 Payments made for breach of a contractual export-obligation condition attached to trade mark use were treated as business expenditure incidental to the assessee's trade, not as penalties for statutory infraction. Because the liability arose on default during the relevant year, was quantified annually, and had accrued under the mercantile system, it was regarded as an ascertained liability rather than a contingent one. The resulting commercial loss was therefore deductible under section 28(1) of the Income-tax Act, 1961, and the contention that the claim was only contingent was rejected. en-us Wed, 23 Jan 1980 00:00:00 +0530 Thu, 25 Mar 2010 16:33:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36975 Payments made for breach of a contractual export-obligation condition attached to trade mark use were treated as business expenditure incidental to the assessee's trade, not as penalties for statutory infraction. Because the liability arose on default during the relevant year, was quantified annually, and had accrued under the mercantile system, it was regarded as an ascertained liability rather than a contingent one. The resulting commercial loss was therefore deductible under section 28(1) of the Income-tax Act, 1961, and the contention that the claim was only contingent was rejected. Case-Laws Income Tax Wed, 23 Jan 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36975