https://www.taxtmi.com/caselaws?id=61037 Damages or fine paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 were treated as deductible business expenditure under section 37(1) where the impost was found to be compensatory rather than penal. The test applied was whether the statutory levy arose from delay in remitting provident fund dues and administrative charges, without wilful retention of employees' contributions or habitual default. On that footing, the payment was held wholly allowable, and the earlier adverse disposal was treated as a mistake. The miscellaneous application was accordingly allowed. en-us Wed, 17 Mar 1999 00:00:00 +0530 Mon, 10 Jan 2011 14:45:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61037 Damages or fine paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 were treated as deductible business expenditure under section 37(1) where the impost was found to be compensatory rather than penal. The test applied was whether the statutory levy arose from delay in remitting provident fund dues and administrative charges, without wilful retention of employees' contributions or habitual default. On that footing, the payment was held wholly allowable, and the earlier adverse disposal was treated as a mistake. The miscellaneous application was accordingly allowed. Case-Laws Income Tax Wed, 17 Mar 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61037