https://www.taxtmi.com/caselaws?id=760547 ITAT Bangalore allowed the assessee's appeal regarding disallowance of interest paid on delayed customs duty payment. The tribunal held that such interest is compensatory in nature for delayed tax payment, not penal, distinguishing it from penalties. Relying on SC precedents including Mahalakshmi Sugar Mills and Lachmandas Mathuradas, the tribunal ruled that interest expenses incurred wholly for business purposes qualify as revenue expenditure deductible under section 37, being an accretion to main payment rather than penalty. en-us Tue, 15 Oct 2024 00:00:00 +0530 Tue, 22 Oct 2024 17:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760547 ITAT Bangalore allowed the assessee's appeal regarding disallowance of interest paid on delayed customs duty payment. The tribunal held that such interest is compensatory in nature for delayed tax payment, not penal, distinguishing it from penalties. Relying on SC precedents including Mahalakshmi Sugar Mills and Lachmandas Mathuradas, the tribunal ruled that interest expenses incurred wholly for business purposes qualify as revenue expenditure deductible under section 37, being an accretion to main payment rather than penalty. Case-Laws Income Tax Tue, 15 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760547