Payment to ESI department for delay allowable under section 37(1)

DCIT Vs Oswal Woollen Mills Ltd. (ITAT Chandigarh) Conclusion: Payment paid by company to ESI department for delay in payments was nothing but compensation and was compensatory in nature. Thus, the impugned amount was to be allowed u/s 37(1). Held: Assessee claimed Rs. 4,04,791/- paid to Employees State Insurance department, Chandigarh being the additional amount charged by ESI department for delay in deposing ESI payment. AO did not allow the claim of assessee on the ground that the said amount was nothing but the penalty levied by ESI department. It was held that the particular amount of ESI...