https://www.taxtmi.com/caselaws?id=37946 Penalty paid for delayed payment of sugarcane cess and purchase tax, being imposed for breach of statutory obligations, is not expenditure incurred wholly and exclusively for business purposes and is therefore not deductible. The distinction applicable to deductions from bills or income computation does not apply where the business itself pays the penalty and claims it as an expense. Expenditure incurred to issue additional equity shares relates to the company's permanent capital structure rather than its circulating capital or day-to-day operations. It is capital expenditure and cannot be allowed as revenue expenditure. en-us Wed, 04 Jan 1978 00:00:00 +0530 Fri, 02 Apr 2010 12:40:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37946 Penalty paid for delayed payment of sugarcane cess and purchase tax, being imposed for breach of statutory obligations, is not expenditure incurred wholly and exclusively for business purposes and is therefore not deductible. The distinction applicable to deductions from bills or income computation does not apply where the business itself pays the penalty and claims it as an expense. Expenditure incurred to issue additional equity shares relates to the company's permanent capital structure rather than its circulating capital or day-to-day operations. It is capital expenditure and cannot be allowed as revenue expenditure. Case-Laws Income Tax Wed, 04 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37946