https://www.taxtmi.com/caselaws?id=365787 A levy described as "interest" under section 30(4) of the Maharashtra Value Added Tax Act was treated as penal in substance because it arose only after audit, inspection or similar proceedings and was linked to an earlier compliance default; it was therefore disallowable under section 37(1), while simple interest under section 30(2) remained compensatory and deductible. On section 14A read with Rule 8D, disallowance was held impermissible in the absence of actual exempt income during the relevant year, because Rule 8D cannot extend beyond section 14A and anticipated or notional exempt income is insufficient. en-us Tue, 21 Aug 2018 00:00:00 +0530 Thu, 23 Aug 2018 09:36:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=365787 A levy described as "interest" under section 30(4) of the Maharashtra Value Added Tax Act was treated as penal in substance because it arose only after audit, inspection or similar proceedings and was linked to an earlier compliance default; it was therefore disallowable under section 37(1), while simple interest under section 30(2) remained compensatory and deductible. On section 14A read with Rule 8D, disallowance was held impermissible in the absence of actual exempt income during the relevant year, because Rule 8D cannot extend beyond section 14A and anticipated or notional exempt income is insufficient. Case-Laws Income Tax Tue, 21 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=365787