This is a bizarre case law. There are umpteen judgements to the contrary, and I am reasonably sure that this case will be rebutted when it sees the light of the court.
Very informative, but sad part is that many people, have commented as though they have heard this for the first time, this shows that people are more on computer less on books,,,, this case is printed in The Chartered Accountant Journal , Nov 2011 issue,
same in case of TATA tea they paid lots of money to terrorist as terrorist threatened to destroy their tea plants & the money paid was allowed as business expense by supreme court !!!