TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether interest paid by the assessee to the sales tax department on arrears of sales tax was an admissible deduction under section 37 of the Income-tax Act, 1961.
Analysis: The issue was governed by the Supreme Court decision in Mahalakshmi Sugar Mills Co. v. CIT, and the same principle had already been applied by the Court in the assessee's own case for an earlier assessment year. On that basis, the interest paid on arrears of sales tax was treated as expenditure laid out wholly for the purposes of business and therefore deductible under section 37.
Conclusion: The interest paid on arrears of sales tax was an admissible deduction under section 37 of the Income-tax Act, 1961, and the question was answered in favour of the assessee and against the Revenue.
TaxTMI 
TaxTMI 
