https://www.taxtmi.com/caselaws?id=20758 Payment under section 45 of the Gujarat Sales Tax Act for delayed tax remittance was treated as penal, not compensatory, because it arose from breach of the statutory obligation to pay on time. As a result, the amount could not be claimed as revenue expenditure or a trade loss and was not deductible in computing business income. The Court followed its earlier ruling on the same issue and reiterated that a payment described as interest remains non-deductible where its true character is a penalty for infraction of law. en-us Fri, 29 Jan 1993 00:00:00 +0530 Tue, 17 Nov 2009 10:58:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20758 Payment under section 45 of the Gujarat Sales Tax Act for delayed tax remittance was treated as penal, not compensatory, because it arose from breach of the statutory obligation to pay on time. As a result, the amount could not be claimed as revenue expenditure or a trade loss and was not deductible in computing business income. The Court followed its earlier ruling on the same issue and reiterated that a payment described as interest remains non-deductible where its true character is a penalty for infraction of law. Case-Laws Income Tax Fri, 29 Jan 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20758