https://www.taxtmi.com/caselaws?id=20052 Under the unamended section 36(3) of the Bombay Sales Tax Act, 1959, the levy for delayed payment of sales tax was treated as penal rather than compensatory interest. The analysis notes that the provision required proof of default without reasonable cause, notice, a written order, and allowed remission, while the statutory scheme distinguished this levy from a separate interest provision for delayed refunds. Earlier binding Bombay High Court decisions were relied on to confirm that calculation by reference to delay did not change its character. On that basis, the amount was not allowable as a deduction under the Income-tax Act, 1961, and the claim was disallowed. en-us Wed, 23 Mar 1994 00:00:00 +0530 Wed, 11 Nov 2009 13:45:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20052 Under the unamended section 36(3) of the Bombay Sales Tax Act, 1959, the levy for delayed payment of sales tax was treated as penal rather than compensatory interest. The analysis notes that the provision required proof of default without reasonable cause, notice, a written order, and allowed remission, while the statutory scheme distinguished this levy from a separate interest provision for delayed refunds. Earlier binding Bombay High Court decisions were relied on to confirm that calculation by reference to delay did not change its character. On that basis, the amount was not allowable as a deduction under the Income-tax Act, 1961, and the claim was disallowed. Case-Laws Income Tax Wed, 23 Mar 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20052