https://www.taxtmi.com/caselaws?id=37549 A voluntary payment to the Chief Minister's Drought Relief Fund was held deductible as business expenditure where it was made in the course of obtaining export permits and had a direct nexus with the assessee's export activity. The court applied the principle that, for section 37(1), expenditure need not be compulsory if it is incurred on grounds of commercial expediency and for the purposes of business. Even if the payment incidentally benefits a charitable cause or third party, it remains allowable where the evidence shows a clear connection with carrying on trade. The deduction was therefore allowed in favour of the assessee. en-us Fri, 13 Oct 1978 00:00:00 +0530 Tue, 30 Mar 2010 14:00:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37549 A voluntary payment to the Chief Minister's Drought Relief Fund was held deductible as business expenditure where it was made in the course of obtaining export permits and had a direct nexus with the assessee's export activity. The court applied the principle that, for section 37(1), expenditure need not be compulsory if it is incurred on grounds of commercial expediency and for the purposes of business. Even if the payment incidentally benefits a charitable cause or third party, it remains allowable where the evidence shows a clear connection with carrying on trade. The deduction was therefore allowed in favour of the assessee. Case-Laws Income Tax Fri, 13 Oct 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37549