https://www.taxtmi.com/caselaws?id=37298 The High Court dismissed the application under section 256(2) of the Income-tax Act, 1961, regarding the allowance of a security deposit as a permissible expenditure in computing income. The Tribunal's decision to adjust the security deposit against arrears of license fee, rather than treat it as forfeited penalty, was upheld. The Court found no evidence of breach of license terms leading to forfeiture, thus allowing the adjustment as a business expenditure. The application was dismissed, with costs awarded to the respondent. en-us Tue, 22 May 1979 00:00:00 +0530 Mon, 29 Mar 2010 10:02:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37298 The High Court dismissed the application under section 256(2) of the Income-tax Act, 1961, regarding the allowance of a security deposit as a permissible expenditure in computing income. The Tribunal's decision to adjust the security deposit against arrears of license fee, rather than treat it as forfeited penalty, was upheld. The Court found no evidence of breach of license terms leading to forfeiture, thus allowing the adjustment as a business expenditure. The application was dismissed, with costs awarded to the respondent. Case-Laws Income Tax Tue, 22 May 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37298