https://www.taxtmi.com/caselaws?id=66673 Interest automatically accruing on delayed remittance under section 23 of the Additional Emoluments (Compulsory Deposit) Act, 1974, was treated as part of the statutory liability and not as a penalty for infraction of law. The provision operated as a recovery mechanism for default, with interest payable at twice the rate specified under section 7(1), and the liability arose without any separate penal order. On that basis, the amount paid, including the interest component and the sum remitted to the deposit account, was considered compensation for delay and allowable as business expenditure rather than a disallowable penalty. en-us Fri, 23 May 1986 00:00:00 +0530 Sat, 05 Mar 2011 15:15:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66673 Interest automatically accruing on delayed remittance under section 23 of the Additional Emoluments (Compulsory Deposit) Act, 1974, was treated as part of the statutory liability and not as a penalty for infraction of law. The provision operated as a recovery mechanism for default, with interest payable at twice the rate specified under section 7(1), and the liability arose without any separate penal order. On that basis, the amount paid, including the interest component and the sum remitted to the deposit account, was considered compensation for delay and allowable as business expenditure rather than a disallowable penalty. Case-Laws Income Tax Fri, 23 May 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66673