https://www.taxtmi.com/caselaws?id=235783 The Tribunal held that interest paid by a public sector undertaking to the Government of Gujarat for delayed payments was not penal in nature but constituted financial charges for late payment. Consequently, the interest was deemed deductible under Section 37(1) of the Act. The High Court upheld the Tribunal's decision, dismissing the Tax Appeal as no legal issue was found regarding the nature of the payment. en-us Tue, 09 Apr 2013 00:00:00 +0530 Sat, 03 Aug 2013 08:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235783 The Tribunal held that interest paid by a public sector undertaking to the Government of Gujarat for delayed payments was not penal in nature but constituted financial charges for late payment. Consequently, the interest was deemed deductible under Section 37(1) of the Act. The High Court upheld the Tribunal's decision, dismissing the Tax Appeal as no legal issue was found regarding the nature of the payment. Case-Laws Income Tax Tue, 09 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235783