https://www.taxtmi.com/caselaws?id=21307 Damages levied under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, were held to be penal in substance, even if described as interest and having some compensatory element. Because the levy arose from default in timely provident fund contributions and was not a mere compensatory charge for delayed payment of a fiscal impost, it could not be treated as expenditure laid out wholly and exclusively for business purposes under the Income-tax Act, 1961. The deduction was therefore disallowed and the issue was decided in favour of the Revenue. en-us Fri, 07 Sep 1990 00:00:00 +0530 Sat, 21 Nov 2009 14:00:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21307 Damages levied under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, were held to be penal in substance, even if described as interest and having some compensatory element. Because the levy arose from default in timely provident fund contributions and was not a mere compensatory charge for delayed payment of a fiscal impost, it could not be treated as expenditure laid out wholly and exclusively for business purposes under the Income-tax Act, 1961. The deduction was therefore disallowed and the issue was decided in favour of the Revenue. Case-Laws Income Tax Fri, 07 Sep 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21307