https://www.taxtmi.com/caselaws?id=18152 Interest paid for delayed payment of income tax under section 220(2) is not deductible under section 37(1) merely because the underlying tax is computed on business profits and gains. The liability arises from default in payment of tax and is an incidental consequence of non-payment, not expenditure laid out wholly and exclusively for business purposes. The court followed the consistent view of several High Courts and held that such interest is not allowable as business expenditure. en-us Thu, 22 Feb 1996 00:00:00 +0530 Tue, 29 Sep 2009 11:40:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18152 Interest paid for delayed payment of income tax under section 220(2) is not deductible under section 37(1) merely because the underlying tax is computed on business profits and gains. The liability arises from default in payment of tax and is an incidental consequence of non-payment, not expenditure laid out wholly and exclusively for business purposes. The court followed the consistent view of several High Courts and held that such interest is not allowable as business expenditure. Case-Laws Income Tax Thu, 22 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18152