Payment Under Settlement Memorandum Allowable as Business Expenditure: Bombay HC

CIT Vs Tata Engineering & Locomotive Company Ltd (Bombay High Court) Bombay High Court held that amount paid towards community services and social welfare under Memorandum of Settlement under the Industrial Dispute Act is allowable as business expenditure. Facts- Vide the present writ petition, petitioner has raised two question of law i.e. whether the ITAT was justified in law in upholding the action of the CIT(A) in deleting the disallowance of Rs.1,96,71,842/- made under section 40A(9) of the Act and whether a payment made under a memorandum of settlement under the Industrial Disputes A...