Payment of Rs. 20000/ made as per direction of Inspector of Legal Metrology as compensation/damages to avoid any future litigation is held to be allowable as business expenditure. ( AY.2013-14)
Ocean Agro (India) Ltd. v. DCIT (2018) 172 ITD 157 (Ahd) (Trib.)
S.37(1): Business expenditure – Payment of Rs. 20000/ made as per direction of Inspector of Legal Metrology as compensation/damages to avoid any future litigation – Allowable as business expenditure.