https://www.taxtmi.com/caselaws?id=25057 Damages paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, were treated as penal in character and not incidental to business, so they were held not deductible as business expenditure. Interest paid on arrears of cess under section 5(3) of the Sugarcane Cess Act was treated as revenue expenditure and therefore allowable as a deduction. Interest paid on delayed sugarcane purchase tax was also held deductible, following the view that such interest is revenue in nature and not a penalty. The reference was thus answered partly for the Revenue and partly for the assessee. en-us Thu, 17 Mar 1988 00:00:00 +0530 Mon, 25 Jan 2010 11:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25057 Damages paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, were treated as penal in character and not incidental to business, so they were held not deductible as business expenditure. Interest paid on arrears of cess under section 5(3) of the Sugarcane Cess Act was treated as revenue expenditure and therefore allowable as a deduction. Interest paid on delayed sugarcane purchase tax was also held deductible, following the view that such interest is revenue in nature and not a penalty. The reference was thus answered partly for the Revenue and partly for the assessee. Case-Laws Income Tax Thu, 17 Mar 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25057