https://www.taxtmi.com/caselaws?id=27479 The court held that interest levied under sections 139 and 215 of the Income-tax Act, 1961, was not deductible under section 37 as it was not paid in respect of capital borrowed for business purposes. The court distinguished the interest as compensatory in nature and emphasized that allowing the deduction would provide an unfair advantage to non-compliant taxpayers. The court clarified that the deduction provision under section 80V was not applicable for the relevant assessment year. Ultimately, the court ruled in favor of the Department, denying the deduction and leaving the parties to bear their own costs. en-us Tue, 25 Sep 1984 00:00:00 +0530 Sat, 13 Feb 2010 11:09:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27479 The court held that interest levied under sections 139 and 215 of the Income-tax Act, 1961, was not deductible under section 37 as it was not paid in respect of capital borrowed for business purposes. The court distinguished the interest as compensatory in nature and emphasized that allowing the deduction would provide an unfair advantage to non-compliant taxpayers. The court clarified that the deduction provision under section 80V was not applicable for the relevant assessment year. Ultimately, the court ruled in favor of the Department, denying the deduction and leaving the parties to bear their own costs. Case-Laws Income Tax Tue, 25 Sep 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27479