20 September 2009
Assessee run a factory with pollution board licence. But they use nearby lands for waste water storege.The land owners file a suit in HC for compensation. The court order to pay compensation. AO disallow this compensation as penalty. it's correct? Any case law is there?
21 September 2009
i think compensation paid for using the lands would be capital /revenue in nature, depending on facts . the Ao is wrong in disallowing compensation as penalty, unless the courts verdict mentions that its a penalty .
CAclubindia
