https://www.taxtmi.com/caselaws?id=27107 Interest payable under section 11B of the Rajasthan Sales Tax Act on delayed remittance of sales tax collections was treated as compensatory rather than punitive. Because the liability arose automatically on default and functioned as compensation for late payment, it was not regarded as a penalty. On that principle, the interest paid was held to be revenue expenditure incurred in the course of business and was deductible under section 37(1) of the Income-tax Act, 1961. en-us Wed, 29 Feb 1984 00:00:00 +0530 Wed, 10 Feb 2010 17:33:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27107 Interest payable under section 11B of the Rajasthan Sales Tax Act on delayed remittance of sales tax collections was treated as compensatory rather than punitive. Because the liability arose automatically on default and functioned as compensation for late payment, it was not regarded as a penalty. On that principle, the interest paid was held to be revenue expenditure incurred in the course of business and was deductible under section 37(1) of the Income-tax Act, 1961. Case-Laws Income Tax Wed, 29 Feb 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27107