https://www.taxtmi.com/caselaws?id=27913 Penalty paid for delayed cess payment under the U.P. Sugarcane Cess Act was held not to be deductible as business expenditure under the Income-tax Act. The statutory scheme distinguished compensatory interest on delay from penalty imposed for default after prescribed procedure, and the governing principle applied was that expenditure arising from an infraction of law is not laid out wholly and exclusively for business purposes. The asserted business necessity for the delay was unsupported by evidence, so the disallowance was upheld against the assessee. en-us Wed, 07 Sep 1983 00:00:00 +0530 Tue, 16 Feb 2010 17:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27913 Penalty paid for delayed cess payment under the U.P. Sugarcane Cess Act was held not to be deductible as business expenditure under the Income-tax Act. The statutory scheme distinguished compensatory interest on delay from penalty imposed for default after prescribed procedure, and the governing principle applied was that expenditure arising from an infraction of law is not laid out wholly and exclusively for business purposes. The asserted business necessity for the delay was unsupported by evidence, so the disallowance was upheld against the assessee. Case-Laws Income Tax Wed, 07 Sep 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27913