Non-deductibility of statutory interest on delayed payments restricts buyers from claiming mandated interest as a tax deduction. Statutory interest on delayed payments to small scale and ancillary industrial suppliers, compounded monthly and payable from the appointed day or next day after the agreed date at a rate above bank lending rates, is expressly excluded from deduction for income computation; Assessing Officers must ascertain and disallow such inadmissible interest claims in buyers' assessments.
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Provisions expressly mentioned in the judgment/order text.
Non-deductibility of statutory interest on delayed payments restricts buyers from claiming mandated interest as a tax deduction.
Statutory interest on delayed payments to small scale and ancillary industrial suppliers, compounded monthly and payable from the appointed day or next day after the agreed date at a rate above bank lending rates, is expressly excluded from deduction for income computation; Assessing Officers must ascertain and disallow such inadmissible interest claims in buyers' assessments.
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