Assessee owned two mines which were used by its subsidiaries for captive use. However, ores available in said mines were not suitable for production and were sold in open market.  Later, subsidiaries purchased ores of desired grade from outside parties which resulted in substantial financial loss.  Assessee paid compensation to its subsidiaries for financial loss incurred and claimed same as expenditure. Assessing Officer denied said claim on ground that it was not incurred wholly and exclusively for purpose of business of assessee    High Court held that it could not be said that there was no intimate connection between assessee and two subsidiaries as far as business activities were concerned and since compensation paid by assessee was to recoup business losses of subsidiaries which was irrecoverable as far as assessee was concerned, expenditure claimed by assessee was to be allowed.   On SLP filed by revenue, it was found that there was a gross delay of 526 days in filing SLP and explanation offered for condonation of delay was not satisfactory. SLP of Revenue is dismissed. (AY. 2006-07 to 2009-10)