https://www.taxtmi.com/caselaws?id=26231 The court ruled in favor of the assessee, allowing deductions for interest paid on arrears of purchase tax under sections 256(1) and 36(1)(iii) of the Income-tax Act, 1961. Additionally, the court held that the excess amount collected pending a legal dispute did not constitute a trading receipt and could be excluded from total income as business expenditure under the mercantile accounting system. The decision was based on precedents and the obligation to refund the amount to constituents. en-us Tue, 09 Oct 1984 00:00:00 +0530 Wed, 03 Feb 2010 16:11:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26231 The court ruled in favor of the assessee, allowing deductions for interest paid on arrears of purchase tax under sections 256(1) and 36(1)(iii) of the Income-tax Act, 1961. Additionally, the court held that the excess amount collected pending a legal dispute did not constitute a trading receipt and could be excluded from total income as business expenditure under the mercantile accounting system. The decision was based on precedents and the obligation to refund the amount to constituents. Case-Laws Income Tax Tue, 09 Oct 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26231