Held that encashment of bank guarantee was incurred in the normal course of business and did not involve any penalty element at all. (AY.2014-15)
Ogene Systems India Ltd. v. ITO (2021) 88 ITR 2 (SN) (Hyd.)(Trib.)
S. 37(1) : Business expenditure-Bank guarantee to execute project-Bank recovering from the assessee-Loss in the ordinary course of business-No element of fines or penalties-Allowable as business expenditure.