https://www.taxtmi.com/caselaws?id=28540 Interest paid on arrears of sugarcane purchase tax was treated as an inseparable accretion to the statutory tax liability, not as a penalty for breach of law. The court applied the same character to the interest as to the principal tax, noting that the delayed-payment interest was incidental to the revenue outgoing and therefore expenditure laid out wholly and exclusively for business purposes. On that basis, the interest was held to be an allowable deduction in computing business income under the Income-tax Act, 1961. en-us Thu, 06 Oct 1983 00:00:00 +0530 Tue, 23 Feb 2010 15:21:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28540 Interest paid on arrears of sugarcane purchase tax was treated as an inseparable accretion to the statutory tax liability, not as a penalty for breach of law. The court applied the same character to the interest as to the principal tax, noting that the delayed-payment interest was incidental to the revenue outgoing and therefore expenditure laid out wholly and exclusively for business purposes. On that basis, the interest was held to be an allowable deduction in computing business income under the Income-tax Act, 1961. Case-Laws Income Tax Thu, 06 Oct 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28540