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2014 (8) TMI 424 - HC - Income TaxClaim of deduction against redemption fine paid to custom authorities - Whether the Tribunal was justified in holding that the sum paid to the Customs authorities on account of redemption fine, was an allowable expenditure – Held that:- Payment in form of expenditure should not be made for the purpose, which is prohibited by law - The fault or defect in the REP licence was not attributable to the assessee as the licenses were issued to India Craft - assessee was not to be blamed and had not indulged in any offence or incurred any expenditure for the purpose, which was prohibited by law - assessee had to pay redemption fine in order to save and protect themselves and they had received the balance consideration from the auction proceeds - the goods had been sold in auction pursuant to the direction of the Supreme Court - the conduct and action of the assessee was not blameworthy or commanding censure - assessee wanted to set-off the redemption fine from the consideration received by them - assessee had only received the net amount after adjustment of the redemption fine – Decided against Revenue.
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