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.