https://www.taxtmi.com/caselaws?id=39384 Interest on delayed payment of sugarcane cess and purchase tax was treated as a compensatory business outgo, not as a penalty, because the statutes separately provided for penalty and distinguished it from interest on arrears. The Court applied ordinary commercial accounting principles and held that real business profits must be computed after allowing statutory liabilities incidental to the conduct of business, unless deduction is expressly or impliedly barred. On that basis, the interest linked to these business tax arrears was allowable in computing business income, and its disallowance was incorrect. en-us Tue, 06 May 1975 00:00:00 +0530 Fri, 16 Apr 2010 11:20:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39384 Interest on delayed payment of sugarcane cess and purchase tax was treated as a compensatory business outgo, not as a penalty, because the statutes separately provided for penalty and distinguished it from interest on arrears. The Court applied ordinary commercial accounting principles and held that real business profits must be computed after allowing statutory liabilities incidental to the conduct of business, unless deduction is expressly or impliedly barred. On that basis, the interest linked to these business tax arrears was allowable in computing business income, and its disallowance was incorrect. Case-Laws Income Tax Tue, 06 May 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39384