https://www.taxtmi.com/caselaws?id=58001 Damages paid under section 14B of the Employees' Provident Fund and Miscellaneous Provisions Act were treated as having both penal and compensatory elements, because the Supreme Court had characterised such damages as in substance a penalty for breach of statutory obligation. On that basis, only the compensatory portion was allowed as a deduction under section 37(1) of the Income-tax Act, and deduction was confined to 40% of the damages. The remaining damages, as well as the penalty paid for delayed ESI dues, were not allowable as revenue deduction. en-us Thu, 20 Dec 1990 00:00:00 +0530 Wed, 15 Dec 2010 17:39:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58001 Damages paid under section 14B of the Employees' Provident Fund and Miscellaneous Provisions Act were treated as having both penal and compensatory elements, because the Supreme Court had characterised such damages as in substance a penalty for breach of statutory obligation. On that basis, only the compensatory portion was allowed as a deduction under section 37(1) of the Income-tax Act, and deduction was confined to 40% of the damages. The remaining damages, as well as the penalty paid for delayed ESI dues, were not allowable as revenue deduction. Case-Laws Income Tax Thu, 20 Dec 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58001