2000 (11) TMI 15 - HC - Income Tax

Summary

The High Court of Madras ruled that penalties paid under rule 173Q of the Central Excise Rules and fines paid in lieu of confiscation of goods are not deductible as business expenditure if they are not compensatory in nature. The Tribunal was incorrect in allowing these penalties as deductions. The judgment favored the Revenue and went against the assessee. (2000 (11) TMI 15 - MADRAS High Court)