https://www.taxtmi.com/caselaws?id=65702 Interest paid for delayed payment of sales tax was treated as compensatory rather than penal because the liability arose under a provision imposing interest on overdue tax, while a separate provision governed penalty for non-payment. On that basis, the statutory interest was held to form part of business expenditure, since the underlying sales tax itself was a business outgoing and the delay-related interest attached to its payment. The cited authority on interest for delayed income-tax payment was distinguished, and the adjustment disallowing the amount was deleted. en-us Sat, 04 Nov 1978 00:00:00 +0530 Fri, 18 Feb 2011 14:14:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65702 Interest paid for delayed payment of sales tax was treated as compensatory rather than penal because the liability arose under a provision imposing interest on overdue tax, while a separate provision governed penalty for non-payment. On that basis, the statutory interest was held to form part of business expenditure, since the underlying sales tax itself was a business outgoing and the delay-related interest attached to its payment. The cited authority on interest for delayed income-tax payment was distinguished, and the adjustment disallowing the amount was deleted. Case-Laws Income Tax Sat, 04 Nov 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65702