https://www.taxtmi.com/caselaws?id=27758 Amount payable for delayed remittance of sales tax under section 13(2) of the Karnataka Sales Tax Act, 1957, was held to be a mandatory statutory liability computed by the Act without discretion to waive or reduce it. Because the levy was compensatory in character, arising from delay in payment rather than punishment for breach of law, it was not treated as a penalty for infraction of law. The court therefore held that the amount was allowable as a business deduction under section 37(1) of the Income-tax Act, 1961, and answered the question in favour of the assessee. en-us Wed, 08 Aug 1984 00:00:00 +0530 Mon, 15 Feb 2010 18:22:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27758 Amount payable for delayed remittance of sales tax under section 13(2) of the Karnataka Sales Tax Act, 1957, was held to be a mandatory statutory liability computed by the Act without discretion to waive or reduce it. Because the levy was compensatory in character, arising from delay in payment rather than punishment for breach of law, it was not treated as a penalty for infraction of law. The court therefore held that the amount was allowable as a business deduction under section 37(1) of the Income-tax Act, 1961, and answered the question in favour of the assessee. Case-Laws Income Tax Wed, 08 Aug 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27758