https://www.taxtmi.com/caselaws?id=424668 Interest charged by the Reserve Bank of India for default in maintaining the cash reserve ratio was treated as a compensatory payment linked to banking operations, not as a penalty, and was therefore allowable as business expenditure in computing business income. The Court followed its earlier banking decision on similar interest paid for non-maintenance of statutory reserve requirements, including cash reserve ratio and statutory liquidity ratio, and held the deduction admissible. en-us Wed, 15 Jun 2022 00:00:00 +0530 Wed, 06 Jul 2022 08:14:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424668 Interest charged by the Reserve Bank of India for default in maintaining the cash reserve ratio was treated as a compensatory payment linked to banking operations, not as a penalty, and was therefore allowable as business expenditure in computing business income. The Court followed its earlier banking decision on similar interest paid for non-maintenance of statutory reserve requirements, including cash reserve ratio and statutory liquidity ratio, and held the deduction admissible. Case-Laws Income Tax Wed, 15 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424668