https://www.taxtmi.com/caselaws?id=26641 Interest automatically payable on delayed sales tax dues was treated as a statutory, compensatory accretion to the tax liability and not a separate penal charge. Because it arose in the assessee's capacity as a trader and formed part of the business tax burden, the Rajasthan HC held that the expenditure was laid out wholly and exclusively for the purposes of business. On that reasoning, interest paid on arrears of sales tax under section 11B was held deductible under section 37 of the Income-tax Act. en-us Tue, 16 Jul 1985 00:00:00 +0530 Wed, 21 Aug 2013 15:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26641 Interest automatically payable on delayed sales tax dues was treated as a statutory, compensatory accretion to the tax liability and not a separate penal charge. Because it arose in the assessee's capacity as a trader and formed part of the business tax burden, the Rajasthan HC held that the expenditure was laid out wholly and exclusively for the purposes of business. On that reasoning, interest paid on arrears of sales tax under section 11B was held deductible under section 37 of the Income-tax Act. Case-Laws Income Tax Tue, 16 Jul 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26641