https://www.taxtmi.com/caselaws?id=27108 Interest paid for delayed payment of sales tax under section 11B of the Rajasthan Sales Tax Act was treated as revenue expenditure, not as a penalty, and was therefore deductible under section 37(1) of the Income-tax Act. The court followed its earlier view and noted that the contrary Delhi High Court position had been reversed by the Supreme Court. Applying that principle, interest paid for delayed tax remittance could not be disallowed merely because it arose from late payment of sales tax, and the deduction was allowed in favour of the assessee. en-us Fri, 30 Mar 1984 00:00:00 +0530 Wed, 10 Feb 2010 17:35:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27108 Interest paid for delayed payment of sales tax under section 11B of the Rajasthan Sales Tax Act was treated as revenue expenditure, not as a penalty, and was therefore deductible under section 37(1) of the Income-tax Act. The court followed its earlier view and noted that the contrary Delhi High Court position had been reversed by the Supreme Court. Applying that principle, interest paid for delayed tax remittance could not be disallowed merely because it arose from late payment of sales tax, and the deduction was allowed in favour of the assessee. Case-Laws Income Tax Fri, 30 Mar 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27108