https://www.taxtmi.com/caselaws?id=466890 Interest paid on delayed payment of indirect taxes (GST, service tax, KK cess, SG cess) is compensatory in nature and therefore deductible as business expenditure under Section 37(1) of the Income-tax Act; the Tribunal applied the compensatory v. penal distinction and followed coordinate precedent treating statutory interest on delayed indirect-tax remittance as compensatory, resulting in allowance of the deduction. Authorities addressing interest on delayed TDS under the Income-tax Act were held inapposite to the pressed grounds, and the addition relating to interest on late TDS payment was dismissed as not pressed. en-us Mon, 24 Feb 2025 00:00:00 +0530 Tue, 24 Feb 2026 21:08:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466890 Interest paid on delayed payment of indirect taxes (GST, service tax, KK cess, SG cess) is compensatory in nature and therefore deductible as business expenditure under Section 37(1) of the Income-tax Act; the Tribunal applied the compensatory v. penal distinction and followed coordinate precedent treating statutory interest on delayed indirect-tax remittance as compensatory, resulting in allowance of the deduction. Authorities addressing interest on delayed TDS under the Income-tax Act were held inapposite to the pressed grounds, and the addition relating to interest on late TDS payment was dismissed as not pressed. Case-Laws Income Tax Mon, 24 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466890