Supreme Court Allows Compensatory Payments for Mining as Deductible Expenses u/s 37(1) of Income Tax Act.

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....Disallowance of payments as penal in nature - compensatory payment made by assessee/retained from the sale proceeds by monitoring committee on the directions of Supreme Court for mining and dumping outside lease area) - payment made as compensation is not hit by Explanation 1 to Section 37(1) and is an allowable expenditure - AT....