Held, that the assessee had incurred a liability on account of liquidated damages which was supported by the memorandum of understanding for delay in commissioning of the project. There was no infirmity in the order of the Commissioner (Appeals) in allowing the claim supported by the debit note and the clauses of the agreement of memorandum of understanding and confirmation of disallowance which was not supported by any agreement.(AY. 2007-08, 2010-11 to 2014-15)
Dy. CIT v. Wind World India Ltd. (2022)98 ITR 22 (Mum)(Trib)
S. 37(1) : Business expenditure-Liquidated damages for delay-Liability supported by MOU-Allowable-Interest on loan taken by party paid by assessee-Interest not allowable.