Deduction u/s 37
Last updated: 27 August 2007
Court :
Delhi HC
Brief :
Compensation actually should be allowed as deduction !
Citation :
CIT vs MODI SPINNING MILLS CO., Ltd.
C.I.T. Vs. Modi Spinning and Weaving Mills Co. Ltd. 03/09/2007 [2007] 292 ITR 479 (Delhi)
Case Fact:
Whether, Compensation and notice pay on closure of units due to prohibition policy of Government, allowed under section 37?
Decision:
Held by the Hon`ble Court that deduction is allowed as a business expenditure because amount is actually paid and factory was closed due to the policy adopted by the Govt. of Haryana prohibiting sale and consumption of liquor in the State.
CA.Saibaburao Nanduri
Published in Income Tax
Views : 31
CAclubindia
