Tribunal held that the compensation paid by Assessee company to Government, as per directions of Supreme Court, to conduct mining in area beyond its sanctioned lease area would be allowed as business expenditure; it was compensatory in nature and not a penalty. (AY. 2013-14, 2014-15)
NMDC v. ACIT (2018) 68 ITR 532/( 2019) 175 ITD 332/ 199 TTJ 772 (Hyd.)(Trib.)
S. 37(1) : Business expenditure-Penalty–Fine-Illegal mining- Compensation is not penalty -Allowable as deduction.
i wish to know, whether Department is moved to Highcourt against this order of ITAT Hyderabad
regarding allowance of SPV retained by Monitoring committee (appointed by the supreme court) has not been discussed with detailed analysis and facts, it could have been elaborated in detailed so that, at the FACT FINDING level, so that High court may not seek further details about this issue.