https://www.taxtmi.com/caselaws?id=5833 Interest on arrears of cess under section 3(3) of the U.P. Sugarcane Cess Act, 1956 was held to be an automatic accretion to the cess liability, recoverable as arrears of land revenue, rather than a penalty for infringement of law. The statute distinguished this interest from the separate civil penalty and criminal penalty provisions, showing that the charge compensated the Government for delayed payment. It was therefore treated as revenue expenditure laid out wholly and exclusively for business purposes and was allowable as a deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Wed, 09 Apr 1980 00:00:00 +0530 Tue, 05 Aug 2014 15:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5833 Interest on arrears of cess under section 3(3) of the U.P. Sugarcane Cess Act, 1956 was held to be an automatic accretion to the cess liability, recoverable as arrears of land revenue, rather than a penalty for infringement of law. The statute distinguished this interest from the separate civil penalty and criminal penalty provisions, showing that the charge compensated the Government for delayed payment. It was therefore treated as revenue expenditure laid out wholly and exclusively for business purposes and was allowable as a deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Wed, 09 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5833