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.
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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