https://www.taxtmi.com/caselaws?id=21266 Interest paid on delayed statutory dues was treated as compensatory, not penal, because it accrued automatically on default and was distinct from any discretionary penalty under the Assam Finance (Sales Tax) Act, 1956. Applying the same reasoning to delayed forest dues, the court noted that interest formed part of the amount due and was therefore part of the underlying liability. On that basis, the payments were held to be laid out wholly and exclusively for business and not barred by the exclusion for penal expenditure, making them deductible under section 37(1) of the Income-tax Act, 1961. en-us Tue, 10 Nov 1992 00:00:00 +0530 Sat, 21 Nov 2009 11:41:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21266 Interest paid on delayed statutory dues was treated as compensatory, not penal, because it accrued automatically on default and was distinct from any discretionary penalty under the Assam Finance (Sales Tax) Act, 1956. Applying the same reasoning to delayed forest dues, the court noted that interest formed part of the amount due and was therefore part of the underlying liability. On that basis, the payments were held to be laid out wholly and exclusively for business and not barred by the exclusion for penal expenditure, making them deductible under section 37(1) of the Income-tax Act, 1961. Case-Laws Income Tax Tue, 10 Nov 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21266