04 September 2009
Whether demmurage charges levied by Mumbai International Airpot Pvt Ltd for late clearing of goods is allowable expense under income tax act? If not is it a penalty or fine as per Income Tax Act?
Even if it is held to be penalty or fine, all penalty incurred in the normal course of business is an allowable expenditure. This has been so held by the ITAT in a recent case involving over/under loading of coal into wagons by Western Coalfields Limited.
04 September 2009
demmurage charges levied by Mumbai International Airpot Pvt Ltd is borne out of commercial contract and if for violation of contract ..........its not an offence ...........hence allowable
CAclubindia
