Payment of bank guarantee fee on failure to perform contractual obligation was eligible for deduction u/s. 37(1)

IT: Where pursuant to agreement entered into with DTC for developing, maintaining and operating of Bus-Q-Shelters, assessee furnished bank guarantee as performance security, in view of fact that due to assessee's failure to perform its part of concessionaire agreement, DTC encashed bank guarantee, amount so paid was to be regarded as revenue in nature allowable under sec. 37(1)

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