Whether excess charges paid by the assessee for using excess load of electricity was allowable business expenditure?

CIT, Patiala v. Industrial Cables (India) Ltd. (2007) 162 Taxman 423 (Punj. & Har.)
Relevant section: 37(1)
The Tribunal recorded a finding that the amount paid by the assessee was a kind of
surcharge levied for drawal of excess load as per the PSEB Rules and not penalty. The
assessee had used the excess load in the course of business, which certainly has
relation with the business. Hence, excess charges paid by the assessee for using excess
load for business purpose, is allowable expense under section 37 of the Income-tax Act,
1961.

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