Restriction on deduction of expenditure u/s 37(1) - compensation ...

Income Tax

November 23, 2023

Restriction on deduction of expenditure u/s 37(1) - compensation paid for breach of contract - enalty has been paid by the assessee on account of breach of contract which cannot be equated with the offence, or something prohibited by law. - Further, the amount of damage crystallized in the year under consideration as evident from the various letters written by NHAL - Thus, it cannot be said that such damages are prior period expenses. - Claim allowed - AT

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Restriction on deduction of expenditure u/s 37(1) - compensation ...

Income Tax

November 23, 2023

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