https://www.taxtmi.com/caselaws?id=38970 Payment made under a trade-mark user scheme for shortfall in export obligation was held to be business expenditure because the scheme gave the assessee a commercial option either to meet the export commitment or pay the stipulated amount. The Court treated the real character of the payment, not its label as a penalty, as determinative and found that it was not an infraction of law or public policy. As the amount was an incident of the assessee's business and commercially connected with its operations, it was allowable as expenditure laid out wholly and exclusively for business purposes. en-us Thu, 01 Apr 1976 00:00:00 +0530 Sat, 10 Apr 2010 16:14:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38970 Payment made under a trade-mark user scheme for shortfall in export obligation was held to be business expenditure because the scheme gave the assessee a commercial option either to meet the export commitment or pay the stipulated amount. The Court treated the real character of the payment, not its label as a penalty, as determinative and found that it was not an infraction of law or public policy. As the amount was an incident of the assessee's business and commercially connected with its operations, it was allowable as expenditure laid out wholly and exclusively for business purposes. Case-Laws Income Tax Thu, 01 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38970