ESOP expenditure allowed as FMV difference; long-term capital gain issue sent back for collector rate determination; deferred income additions disallo...
Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
ITAT allowed the appeal of the anonymous partnership assessee, holding that interest paid on delayed remittance of GST and VAT is compensatory rather than penal in nature and therefore deductible for income-tax purposes. The Tribunal found that the payment was made to discharge statutory liabilities and not to punish the assessee, placing it within the ambit of allowable business expenditure. Accordingly, the grounds challenging disallowance of such interest were allowed and the addition was deleted, with the assessment adjusted to reflect the deduction of interest on delayed statutory remittances.
ITAT allowed the appeal of the anonymous partnership assessee, holding that interest paid on delayed remittance of GST and VAT is compensatory rather than penal in nature and therefore deductible for income-tax purposes. The Tribunal found that the payment was made to discharge statutory liabilities and not to punish the assessee, placing it within the ambit of allowable business expenditure. Accordingly, the grounds challenging disallowance of such interest were allowed and the addition was deleted, with the assessment adjusted to reflect the deduction of interest on delayed statutory remittances.
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