https://www.taxtmi.com/caselaws?id=471457 Contractual under-loading charges arising from idle freight under a fuel supply agreement are deductible business expenditure where the agreement places liability on the seller and recovery occurs through sale-bill adjustments. As commercial obligations incurred in ordinary coal-supply operations, they are not expenditure for an offence or conduct prohibited by law under Explanation 1 to section 37(1). Demurrage for delayed loading or unloading at railway sidings is compensatory for extended use, storage and custody facilities and incidental to goods transportation. It likewise remains deductible where it is not a fine or statutory penalty. This treatment sustains deletion of disallowances for both categories of expenditure. en-us Mon, 07 Apr 2025 00:00:00 +0530 Thu, 03 Sep 2026 13:57:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471457 Contractual under-loading charges arising from idle freight under a fuel supply agreement are deductible business expenditure where the agreement places liability on the seller and recovery occurs through sale-bill adjustments. As commercial obligations incurred in ordinary coal-supply operations, they are not expenditure for an offence or conduct prohibited by law under Explanation 1 to section 37(1). Demurrage for delayed loading or unloading at railway sidings is compensatory for extended use, storage and custody facilities and incidental to goods transportation. It likewise remains deductible where it is not a fine or statutory penalty. This treatment sustains deletion of disallowances for both categories of expenditure. Case-Laws Income Tax Mon, 07 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471457