Deduction u/s 37

Last updated: 27 August 2007

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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.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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