2013 (7) TMI 114

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.... 2004-05 the following question of law has been raised for our consideration : "On the facts and in the circumstances of the case and in law whether the Tribunal is justified in deleting the addition made by the Assessing Officer of Rs. 40,10,437 on account of penalty paid by the assessee to the Apparel Export Promotion Council even though the said expenses are not allowed under section 37 of th....

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....s books of account and claimed deduction under section 37(1) of the Income-tax Act, 1961 ("the Act"). Before the Assessing Officer, the respondent contended that the nomenclature of penalty was erroneous as the payment made to the AEPC was compensatory in nature and, thus, allowable as deduction under section 37(1) of the Act. However, the Assessing officer did not accept the same and concluded th....