https://www.taxtmi.com/caselaws?id=23347 Interest paid on delayed kist payment was deductible because the liability arose under a contractual arrangement and was not shown to be penal or punitive in nature. The court treated the interest as a contractual outgoing, not a payment for infraction of law, and allowed the deduction in computing income. The timing distinction between default before or after the 20th day of the month was held irrelevant, as no material showed that it altered the character of the liability. Deductibility therefore remained unaffected by the date of default. en-us Mon, 31 Jul 1989 00:00:00 +0530 Fri, 18 Dec 2009 15:30:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23347 Interest paid on delayed kist payment was deductible because the liability arose under a contractual arrangement and was not shown to be penal or punitive in nature. The court treated the interest as a contractual outgoing, not a payment for infraction of law, and allowed the deduction in computing income. The timing distinction between default before or after the 20th day of the month was held irrelevant, as no material showed that it altered the character of the liability. Deductibility therefore remained unaffected by the date of default. Case-Laws Income Tax Mon, 31 Jul 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23347