Compensation paid for not complying with law was allowable as normal expenditure u/s 37(1)

Singareni Colleries Company Ltd. Vs ACIT (ITAT Hyderabad) Conclusion: Payments were made to various state government departments for delay in submission of form or document or compliance with the procedures, in which case, the payment was not for violation of law but compensation for not complying with law and was allowable expenditure as normal business expenditure u/s 37(1). Held:  Assessee incurred expenditure by way of penalty or fine for violation of any law for the time being in force. Since assessee failed to substantiate the said expenditure with documentary evidence, AO made the addi...