https://www.taxtmi.com/caselaws?id=15514 Interest paid for delayed payment of sugarcane purchase price under section 17(3) of the Sugarcane (Regulation of Supply and Purchase) Act, 1958 was held to arise from a default in payment of a business liability on credit, not from a penalty for breach of law. The charge was therefore treated as akin to ordinary commercial interest on delayed purchase payments and remained deductible under the Income-tax Act, 1961. Interest on arrears of sugarcane purchase tax was noted to stand on a different footing and did not alter this character. The deduction was allowed in favour of the assessee. en-us Thu, 11 Mar 1999 00:00:00 +0530 Tue, 25 Aug 2009 16:40:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15514 Interest paid for delayed payment of sugarcane purchase price under section 17(3) of the Sugarcane (Regulation of Supply and Purchase) Act, 1958 was held to arise from a default in payment of a business liability on credit, not from a penalty for breach of law. The charge was therefore treated as akin to ordinary commercial interest on delayed purchase payments and remained deductible under the Income-tax Act, 1961. Interest on arrears of sugarcane purchase tax was noted to stand on a different footing and did not alter this character. The deduction was allowed in favour of the assessee. Case-Laws Income Tax Thu, 11 Mar 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15514