https://www.taxtmi.com/caselaws?id=20972 The amount payable under section 45(5) of the Gujarat Sales Tax Act, 1969 was a penalty for default in payment of tax, not a compensatory interest charge, because the provision repeatedly used the term "penalty," made liability depend on failure to pay without reasonable cause, and allowed the Commissioner to remit it. Its computation by reference to arrears and delay did not change that character. As payment for infraction of law is not a normal business incident, the amount was not deductible as business expenditure under the Income-tax Act, 1961. en-us Thu, 21 Jan 1993 00:00:00 +0530 Wed, 18 Nov 2009 13:22:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20972 The amount payable under section 45(5) of the Gujarat Sales Tax Act, 1969 was a penalty for default in payment of tax, not a compensatory interest charge, because the provision repeatedly used the term "penalty," made liability depend on failure to pay without reasonable cause, and allowed the Commissioner to remit it. Its computation by reference to arrears and delay did not change that character. As payment for infraction of law is not a normal business incident, the amount was not deductible as business expenditure under the Income-tax Act, 1961. Case-Laws Income Tax Thu, 21 Jan 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20972