https://www.taxtmi.com/caselaws?id=25210 A statutory levy for delayed payment of sales tax was treated as a penalty where the scheme, marginal note, hearing requirement, reference to reasonable cause, and remission power showed a penal character. Section 38(2) did not convert the charge into interest merely because the amount was initially deposited; it only fixed the payable amount subject to reduction or waiver. The levy remained default-based and penal in substance, with wilfulness relevant. It was therefore not an allowable deduction in computing business income. en-us Tue, 27 Jan 1987 00:00:00 +0530 Wed, 27 Jan 2010 11:52:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25210 A statutory levy for delayed payment of sales tax was treated as a penalty where the scheme, marginal note, hearing requirement, reference to reasonable cause, and remission power showed a penal character. Section 38(2) did not convert the charge into interest merely because the amount was initially deposited; it only fixed the payable amount subject to reduction or waiver. The levy remained default-based and penal in substance, with wilfulness relevant. It was therefore not an allowable deduction in computing business income. Case-Laws Income Tax Tue, 27 Jan 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25210