Allowing the appeal of the assessee the Tribunal held that the payment was made as per the direction of the Supreme Court to lease holders of various mines for restoration and rehabilitation of damage to ecology owing to mining operations. The payment cannot be hit by explanation to section 37(1) of the Act. (AY. 2014-15)
P. Venganna Setty and Brothers v. ACIT (2021) 133 taxman 368 / ( 2022) 192 ITD 541 (Bang.)(Trib.)
S. 37(1) : Business expenditure-Payment made for reclamation and rehabilitation of mine area-Direction of Supreme Court-Allowable as deduction.