Section 37(1) of the Income Tax Act, 1961 — Business Expenditure — The inability to meet the contractual obligation by the assessee could not be termed as an offence or infraction of law so as to deny the claim of the assessee by invoking explanation 1 to section 37(1). Merely because the assessee categorized the claim under "penalty levied on it for not complying with the terms of the contract", it was not permissible to conclude that such penalty was in repsect of any offence or infraction of law committed by the assessee so as to invoke the provisions under explanation 1 to section 37(1) — Deputy Commissioner of income tax vs. Mahavir Multitrade P. Ltd. [2020] 77 ITR (trib) 165 (Delhi)