https://www.taxtmi.com/caselaws?id=5643 Interest paid for delay in discharging income-tax, advance tax, surtax, or tax on voluntarily disclosed income is a statutory liability linked to the tax obligation itself, not expenditure incurred wholly and exclusively for business purposes. It is therefore not deductible under section 37 of the Income-tax Act, 1961. The same character applies to interest under the Voluntary Disclosure of Income and Wealth Act, 1976, because delay in payment does not convert the amount into business expenditure. Deduction under section 36(1)(iii) is also unavailable unless the interest is shown to relate to capital borrowed from an outside source for business purposes. en-us Thu, 05 Mar 1998 00:00:00 +0530 Fri, 10 Oct 2025 16:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5643 Interest paid for delay in discharging income-tax, advance tax, surtax, or tax on voluntarily disclosed income is a statutory liability linked to the tax obligation itself, not expenditure incurred wholly and exclusively for business purposes. It is therefore not deductible under section 37 of the Income-tax Act, 1961. The same character applies to interest under the Voluntary Disclosure of Income and Wealth Act, 1976, because delay in payment does not convert the amount into business expenditure. Deduction under section 36(1)(iii) is also unavailable unless the interest is shown to relate to capital borrowed from an outside source for business purposes. Case-Laws Income Tax Thu, 05 Mar 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5643