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2022 (1) TMI 296 - CALCUTTA HIGH COURTPunitive charges paid to the Railways - Allowable Revenue expenditure u/s 37 - whether the punitive charges paid to the Railways for alleged violation of the provision of Indian Railway Act could be allowable as expenditure? - whether deduction can be claimed by the assessee in respect of such expenditure? - HELD THAT:- This issue has been decided in favour of the respondent/assessee by following the decision of the Hon’ble Supreme Court in Prakash Cotton Mills Pvt. Ltd.[1993 (4) TMI 3 - SUPREME COURT] wherein it was held that the payment made to the Railway for overloading of wagons is compensatory in nature and can be allowed under explanation to Section 37(1) of the Act. Furthermore, on facts the Tribunal noted that when the respondent/assessee loads the goods for dispatch through railway wagons actual measurement of weight cannot be done due to absence of weighing bridge at the originating station. Thus, we find that the Tribunal rightly decided the issue in favour of the respondent/assessee.
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