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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Disallowance u/s 37 of interest paid on delayed payment of additional Customs Duty was challenged, contending that it was not penal in nature but compensation for delay in payment of taxes, hence allowable as revenue expenditure. Relying on Supreme Court rulings in Mahalakshmi Sugar Mills Company Ltd., Lachmandas Mathuradas, and Karnataka High Court's decision in Mysore Electrical Industries Ltd., it was held that since interest is calculated at a certain percentage on a time basis for delayed payment of customs duty, it is compensatory in nature. The interest expenses were incurred wholly and exclusively for business purposes, neither personal nor capital, and cannot be treated as a penalty. Interest due to delayed payment of customs duty is deductible u/s 37 as an accretion to the main payment, not a penalty, and therefore allowable as a deduction. The assessee's appeal was allowed.
Disallowance u/s 37 of interest paid on delayed payment of additional Customs Duty was challenged, contending that it was not penal in nature but compensation for delay in payment of taxes, hence allowable as revenue expenditure. Relying on Supreme Court rulings in Mahalakshmi Sugar Mills Company Ltd., Lachmandas Mathuradas, and Karnataka High Court's decision in Mysore Electrical Industries Ltd., it was held that since interest is calculated at a certain percentage on a time basis for delayed payment of customs duty, it is compensatory in nature. The interest expenses were incurred wholly and exclusively for business purposes, neither personal nor capital, and cannot be treated as a penalty. Interest due to delayed payment of customs duty is deductible u/s 37 as an accretion to the main payment, not a penalty, and therefore allowable as a deduction. The assessee's appeal was allowed.
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