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2016 (4) TMI 653 - HC - Income TaxClaim for deduction under section 37(1) - payment to Exide Technologies by way of reimbursement as Exide Technologies was required to pay such amount to Deramic Group on account of the default on the part of the assessee - Held that:- As what the assessee had paid to Exide Technologies was with a view to compensate the holding company for the amount which it was required to pay to Deramic Group on account of the breach committed by the assessee of the conditions of the agreement between Exide Technologies and Deramic Group. The amount paid by the assessee is not penal in nature, but compensatory in nature and hence, the above decision of the Supreme Court in the case of Prakash Cotton Mills P. Ltd. v. Commissioner of Income Tax, (1993 (4) TMI 3 - SUPREME Court], on the contrary, supports the case of the respondent assessee. - Decided in favour of assessee
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