https://www.taxtmi.com/caselaws?id=29450 Interest statutorily payable to the municipal corporation on delayed municipal tax payment under section 236(3) of the Calcutta Municipal Act, 1951, was treated as a compensatory accretion to the tax and not as a penalty for breach of law. On that basis, it was deductible in computing total income. The Tribunal's contrary view was unsustainable because it proceeded on the premise that any payment linked to delayed tax payment is automatically non-deductible. The disallowance was therefore set aside and the deduction allowed. en-us Mon, 01 Jun 1981 00:00:00 +0530 Sat, 13 Mar 2010 10:14:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29450 Interest statutorily payable to the municipal corporation on delayed municipal tax payment under section 236(3) of the Calcutta Municipal Act, 1951, was treated as a compensatory accretion to the tax and not as a penalty for breach of law. On that basis, it was deductible in computing total income. The Tribunal's contrary view was unsustainable because it proceeded on the premise that any payment linked to delayed tax payment is automatically non-deductible. The disallowance was therefore set aside and the deduction allowed. Case-Laws Income Tax Mon, 01 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29450