{"id":62245,"date":"2026-07-18T16:15:05","date_gmt":"2026-07-18T10:45:05","guid":{"rendered":"https:\/\/itatonline.org\/digest\/dcit-v-aia-engineering-ltd-2025-238-ttj-632-179-taxmann-com-152-ahd-trib\/"},"modified":"2026-07-18T16:15:05","modified_gmt":"2026-07-18T10:45:05","slug":"dcit-v-aia-engineering-ltd-2025-238-ttj-632-179-taxmann-com-152-ahd-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/dcit-v-aia-engineering-ltd-2025-238-ttj-632-179-taxmann-com-152-ahd-trib\/","title":{"rendered":"DCIT v. AIA Engineering Ltd. (2025) 238 TTJ 632 \/ 179 taxmann.com 152 (Ahd.)(Trib.)"},"content":{"rendered":"<p>The assessee paid compensation to a foreign company for the settlement of a patent infringement dispute through an out-of-court settlement. The Tribunal held that the payment was neither a penalty nor for any purpose prohibited by law, but was incurred for commercial expediency to settle a bona fide civil dispute. Explanation 3 to section 37(1), inserted by the Finance Act, 2022, enlarging the scope of &#8220;prohibited by law&#8221;, is prospective and cannot be applied to AY 2014-15. Accordingly, the disallowance was deleted. (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1): Business expenditure-Settlement of patent dispute-Compensation paid for settlement of civil litigation is allowable business expenditure and not hit by Explanation 1 to section 37(1). [S. 37(1), Explns. 1 &amp; 3] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62245","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gbX","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62245"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62245\/revisions"}],"predecessor-version":[{"id":62246,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62245\/revisions\/62246"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}