https://www.taxtmi.com/caselaws?id=37279 Payment made under a statutory option to the Textile Commissioner in lieu of packing the minimum quantity of cloth was treated as a commercial business outlay, not a penalty or unlawful exaction. Because the Cotton Textiles (Control) Order, 1948 permitted the producer either to pack the prescribed quantity or pay the deficiency amount, the expenditure was held to be incurred on grounds of commercial expediency and wholly and exclusively for business purposes under section 37(1) of the Income-tax Act, 1961. The amount was therefore allowable as a business deduction in favour of the assessee. en-us Tue, 07 Aug 1979 00:00:00 +0530 Mon, 17 Jul 2017 10:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37279 Payment made under a statutory option to the Textile Commissioner in lieu of packing the minimum quantity of cloth was treated as a commercial business outlay, not a penalty or unlawful exaction. Because the Cotton Textiles (Control) Order, 1948 permitted the producer either to pack the prescribed quantity or pay the deficiency amount, the expenditure was held to be incurred on grounds of commercial expediency and wholly and exclusively for business purposes under section 37(1) of the Income-tax Act, 1961. The amount was therefore allowable as a business deduction in favour of the assessee. Case-Laws Income Tax Tue, 07 Aug 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37279