https://www.taxtmi.com/caselaws?id=16839 Damages paid for delayed remittance of Employees' State Insurance and provident fund contributions were held to be penal liabilities arising from infraction of law, because the amounts were imposed under orders that had attained finality under the relevant labour statutes. They were not incurred for the purpose of business and, therefore, were not allowable as a deduction under section 37(1) of the Income-tax Act, 1961. The court distinguished cases involving interest on statutory cess and held that financial difficulty did not affect the disallowance. The claim failed against the assessee. en-us Fri, 13 Sep 1996 00:00:00 +0530 Sat, 12 Sep 2009 15:30:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16839 Damages paid for delayed remittance of Employees' State Insurance and provident fund contributions were held to be penal liabilities arising from infraction of law, because the amounts were imposed under orders that had attained finality under the relevant labour statutes. They were not incurred for the purpose of business and, therefore, were not allowable as a deduction under section 37(1) of the Income-tax Act, 1961. The court distinguished cases involving interest on statutory cess and held that financial difficulty did not affect the disallowance. The claim failed against the assessee. Case-Laws Income Tax Fri, 13 Sep 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16839