https://www.taxtmi.com/caselaws?id=754291 The ITAT Delhi allowed the assessee's appeal on multiple grounds. Product development expenses were held to be revenue expenditure deductible in the year of incurrence, as they provided no enduring benefit and involved regular use of employees and materials for manufacturing. Liquidated damages paid to customers for contractual breaches were allowed as revenue expenditure since they were contractual obligations, not penalties from regulatory authorities. Employee contributions to PF and ESI were decided based on the Supreme Court's Checkmate decision, allowing deduction if remitted before the due date for filing returns under section 139(1). en-us Mon, 08 Jan 2024 00:00:00 +0530 Wed, 19 Jun 2024 16:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754291 The ITAT Delhi allowed the assessee's appeal on multiple grounds. Product development expenses were held to be revenue expenditure deductible in the year of incurrence, as they provided no enduring benefit and involved regular use of employees and materials for manufacturing. Liquidated damages paid to customers for contractual breaches were allowed as revenue expenditure since they were contractual obligations, not penalties from regulatory authorities. Employee contributions to PF and ESI were decided based on the Supreme Court's Checkmate decision, allowing deduction if remitted before the due date for filing returns under section 139(1). Case-Laws Income Tax Mon, 08 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754291