https://www.taxtmi.com/caselaws?id=776006 The ITAT Mumbai held that interest on delayed payment of GST and VAT is an allowable business expenditure under section 37(1) as it is compensatory in nature. Similarly, interest and penalty on non-fulfillment of advance license obligations are deductible under the same provision. Regarding loss on sale of an asset, the tribunal clarified that section 41(2) applies only to power generation businesses using the SLM method; since the assessee used the WDV method, the loss is a short-term capital loss (STCL) under section 50. The STCL cannot be set off against business income per amended sections 70(2) and 71(3). The ITAT upheld the CIT(A)'s decision disallowing the loss adjustment against business income. en-us Mon, 20 Jan 2025 00:00:00 +0530 Mon, 04 Aug 2025 08:28:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776006 The ITAT Mumbai held that interest on delayed payment of GST and VAT is an allowable business expenditure under section 37(1) as it is compensatory in nature. Similarly, interest and penalty on non-fulfillment of advance license obligations are deductible under the same provision. Regarding loss on sale of an asset, the tribunal clarified that section 41(2) applies only to power generation businesses using the SLM method; since the assessee used the WDV method, the loss is a short-term capital loss (STCL) under section 50. The STCL cannot be set off against business income per amended sections 70(2) and 71(3). The ITAT upheld the CIT(A)'s decision disallowing the loss adjustment against business income. Case-Laws Income Tax Mon, 20 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776006