https://www.taxtmi.com/caselaws?id=8420 Penalty paid for delayed payment of cess and purchase tax under the U.P. Sugar-cane Cess Act, 1956 was held not deductible in computing business income. The liability arose from breach of a statutory obligation, and the penalty was distinct from the cess itself; a validating law did not convert that penalty into an allowable business outlay. Because the payment resulted from non-compliance with law, it was not expenditure laid out wholly and exclusively for the purposes of business and could not be justified on commercial expediency grounds. The reference was answered against the assessee and in favour of the Revenue. en-us Mon, 24 Jan 1972 00:00:00 +0530 Wed, 15 Apr 2009 09:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8420 Penalty paid for delayed payment of cess and purchase tax under the U.P. Sugar-cane Cess Act, 1956 was held not deductible in computing business income. The liability arose from breach of a statutory obligation, and the penalty was distinct from the cess itself; a validating law did not convert that penalty into an allowable business outlay. Because the payment resulted from non-compliance with law, it was not expenditure laid out wholly and exclusively for the purposes of business and could not be justified on commercial expediency grounds. The reference was answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Mon, 24 Jan 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8420