https://www.taxtmi.com/caselaws?id=29650 Interest charged for delayed payment of purchase tax under the U.P. Sugarcane (Purchase Tax) Act, 1961 was treated as compensatory accretion to the statutory levy, not a penalty for infraction of law. On that footing, it was deductible in computing business income. Because the allowance of that deduction was legally sustainable, the Commissioner could not regard the Income-tax Officer's assessment as erroneous or prejudicial to the interests of revenue. The deduction was therefore upheld and the reference was answered in favour of the assessee on both questions. en-us Mon, 23 Feb 1981 00:00:00 +0530 Mon, 15 Mar 2010 13:22:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29650 Interest charged for delayed payment of purchase tax under the U.P. Sugarcane (Purchase Tax) Act, 1961 was treated as compensatory accretion to the statutory levy, not a penalty for infraction of law. On that footing, it was deductible in computing business income. Because the allowance of that deduction was legally sustainable, the Commissioner could not regard the Income-tax Officer's assessment as erroneous or prejudicial to the interests of revenue. The deduction was therefore upheld and the reference was answered in favour of the assessee on both questions. Case-Laws Income Tax Mon, 23 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29650