https://www.taxtmi.com/caselaws?id=26175 Interest paid on arrears of sales tax was treated as revenue expenditure because it was not penal in character and was incurred wholly and exclusively for business purposes. Applying this principle, the Rajasthan High Court held that such interest was deductible under section 37(1) of the Income-tax Act, 1961. The court followed the view taken earlier in the assessee's own case and accepted that payment to the Sales Tax Department in these circumstances formed part of allowable business expenditure. en-us Wed, 21 Aug 1985 00:00:00 +0530 Wed, 03 Feb 2010 13:01:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26175 Interest paid on arrears of sales tax was treated as revenue expenditure because it was not penal in character and was incurred wholly and exclusively for business purposes. Applying this principle, the Rajasthan High Court held that such interest was deductible under section 37(1) of the Income-tax Act, 1961. The court followed the view taken earlier in the assessee's own case and accepted that payment to the Sales Tax Department in these circumstances formed part of allowable business expenditure. Case-Laws Income Tax Wed, 21 Aug 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26175