https://www.taxtmi.com/caselaws?id=20053 A statutory levy described as a penalty under Section 207A of the Bombay Municipal Corporation Act remained a penalty for tax purposes, because its quantum was fixed by the Commissioner, it was subject to possible remission under Section 208, and it was not linked to the length of default. The fact that the levy was capped at 20% of the tax, or quantified by reference to tax, did not convert it into interest. The absence of express notice and the reference in Section 471 did not alter its statutory character. The amount was therefore not deductible as interest or as a revenue outgo, and the issue was answered in favour of the Revenue. en-us Mon, 28 Mar 1994 00:00:00 +0530 Wed, 11 Nov 2009 13:47:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20053 A statutory levy described as a penalty under Section 207A of the Bombay Municipal Corporation Act remained a penalty for tax purposes, because its quantum was fixed by the Commissioner, it was subject to possible remission under Section 208, and it was not linked to the length of default. The fact that the levy was capped at 20% of the tax, or quantified by reference to tax, did not convert it into interest. The absence of express notice and the reference in Section 471 did not alter its statutory character. The amount was therefore not deductible as interest or as a revenue outgo, and the issue was answered in favour of the Revenue. Case-Laws Income Tax Mon, 28 Mar 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20053