Reclamation & rehabilitation expenditure allowable under section 37(1)

P. Venganna Setty and Brothers Vs ACIT (ITAT Bangalore) Facts- In the present case appeal is preferred by the assessee against the expense of INR 13,02,180 towards reclamation and rehabilitation of mine area disallowed by the revenue. Conclusion- It is clear that the Hon’ble Supreme Court directed compensatory payment to be made by the lease holders of various mines for Restoration and Rehabilitation of damage to ecology owing to mining operations. It is pursuant to the aforesaid directions that the assessee had to make the aforesaid payment and this fact is not in dispute. Held expenditure ...