https://www.taxtmi.com/caselaws?id=786552 Whether a contractual payment for shortage of goods in transit is deductible under Section 37(1) was decided by applying the principle that payments which compensate for contractual losses and do not arise from breach of statutory law are business expenditures; the tribunal found contemporaneous contract clauses, correspondence, ledger and banking evidence showed the payment was compensatory and incurred wholly and exclusively for business, and therefore the disallowance under the Explanation to Section 37(1) was not sustainable and the appeal was allowed. en-us Wed, 11 Feb 2026 00:00:00 +0530 Sat, 14 Feb 2026 08:29:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786552 Whether a contractual payment for shortage of goods in transit is deductible under Section 37(1) was decided by applying the principle that payments which compensate for contractual losses and do not arise from breach of statutory law are business expenditures; the tribunal found contemporaneous contract clauses, correspondence, ledger and banking evidence showed the payment was compensatory and incurred wholly and exclusively for business, and therefore the disallowance under the Explanation to Section 37(1) was not sustainable and the appeal was allowed. Case-Laws Income Tax Wed, 11 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786552