https://www.taxtmi.com/caselaws?id=39416 A statutory payment made to the Textile Commissioner under clause 21-C(1)(b) of the Cotton Textiles (Control) Order, 1948, was treated as part of the commercial working of the textile business because it arose from an option under the control scheme and not from any infraction of law. The payment was therefore distinguished from a penalty. On that basis, the outlay was regarded as expenditure incurred wholly and exclusively for business purposes and fell within section 37 of the Income-tax Act, 1961. The commentary states that such control-order payments are deductible business expenditure when they are commercially incidental to the undertaking. en-us Fri, 07 Nov 1975 00:00:00 +0530 Fri, 16 Apr 2010 13:01:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39416 A statutory payment made to the Textile Commissioner under clause 21-C(1)(b) of the Cotton Textiles (Control) Order, 1948, was treated as part of the commercial working of the textile business because it arose from an option under the control scheme and not from any infraction of law. The payment was therefore distinguished from a penalty. On that basis, the outlay was regarded as expenditure incurred wholly and exclusively for business purposes and fell within section 37 of the Income-tax Act, 1961. The commentary states that such control-order payments are deductible business expenditure when they are commercially incidental to the undertaking. Case-Laws Income Tax Fri, 07 Nov 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39416