https://www.taxtmi.com/forum/issue?id=120547 Whether a GST demand and associated interest and penalty raised during a search and relating to prior periods is deductible in the year of payment depends on whether the liability arises from suppressed turnover or reversal of ineligible input tax credit under section 17(5); amounts representing principal tax liability for earlier periods are to be characterised as deferred revenue or capital in nature rather than current deductible expenditure, while interest and penalty components require separate deductibility analysis under the Income Tax Act. en-us Sat, 11 Oct 2025 16:59:55 +0530 Tue, 11 Nov 2025 18:55:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=120547 Whether a GST demand and associated interest and penalty raised during a search and relating to prior periods is deductible in the year of payment depends on whether the liability arises from suppressed turnover or reversal of ineligible input tax credit under section 17(5); amounts representing principal tax liability for earlier periods are to be characterised as deferred revenue or capital in nature rather than current deductible expenditure, while interest and penalty components require separate deductibility analysis under the Income Tax Act. Discussion-Forum Income Tax Sat, 11 Oct 2025 16:59:55 +0530 https://www.taxtmi.com/forum/issue?id=120547