https://www.taxtmi.com/caselaws?id=776349 The ITAT Mumbai allowed the assessee's appeal, holding that the contribution to the Special Purpose Vehicle (SPV), mandated by the SC and administered by the Central Empowered Committee, constitutes a legitimate business expenditure under section 37(1). The payment, aimed at ameliorative and mitigative measures related to mining operations, was compulsory for the continuation of the assessee's business and not a penal imposition. The Tribunal found a clear nexus between the expenditure and the business, emphasizing that the assessee had no discretion to avoid the payment. Consistent with prior decisions, the contribution was held to be wholly and exclusively for business purposes and thus deductible. en-us Thu, 31 Jul 2025 00:00:00 +0530 Fri, 08 Aug 2025 05:20:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776349 The ITAT Mumbai allowed the assessee's appeal, holding that the contribution to the Special Purpose Vehicle (SPV), mandated by the SC and administered by the Central Empowered Committee, constitutes a legitimate business expenditure under section 37(1). The payment, aimed at ameliorative and mitigative measures related to mining operations, was compulsory for the continuation of the assessee's business and not a penal imposition. The Tribunal found a clear nexus between the expenditure and the business, emphasizing that the assessee had no discretion to avoid the payment. Consistent with prior decisions, the contribution was held to be wholly and exclusively for business purposes and thus deductible. Case-Laws Income Tax Thu, 31 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776349