Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
Objective characteristics and principal use govern mining-tyre classification, while fresh advance ruling applications may rely on additional technica...
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The assessee claimed deduction for interest and late fees paid on account of delay in filing GST returns. The authorities disallowed the claim, invoking Explanation 1 to Section 37(1) of the Income Tax Act. The Tribunal held that the interest and late fees were compensatory in nature, levied for non-compliance with the GST Act provisions, and not for committing any prohibited offence. Hence, such expenses are allowable as business expenditure u/s 37(1). The Tribunal relied on the precedent of ITO vs. Virtue Financial Services (P) Ltd, which allowed deduction for interest on delayed statutory payments as compensatory expenses. Accordingly, the assessee's grounds were allowed, and interest and late fees on delayed GST returns were held deductible u/s 37(1).
The assessee claimed deduction for interest and late fees paid on account of delay in filing GST returns. The authorities disallowed the claim, invoking Explanation 1 to Section 37(1) of the Income Tax Act. The Tribunal held that the interest and late fees were compensatory in nature, levied for non-compliance with the GST Act provisions, and not for committing any prohibited offence. Hence, such expenses are allowable as business expenditure u/s 37(1). The Tribunal relied on the precedent of ITO vs. Virtue Financial Services (P) Ltd, which allowed deduction for interest on delayed statutory payments as compensatory expenses. Accordingly, the assessee's grounds were allowed, and interest and late fees on delayed GST returns were held deductible u/s 37(1).
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