https://www.taxtmi.com/caselaws?id=61407 A sales-tax liability that arose and was determined during the relevant accounting period was deductible in that year, because the liability had crystallised within the year. A charge levied for delayed payment under section 36(3) of the Bombay Sales-tax Act was treated as compensatory in nature, functioning as interest for deprivation of Government funds rather than a punitive penalty, and was therefore allowable as a business deduction. The claim relating to forfeiture of excess sales-tax collection could not be decided on the existing record, as the relevant factual basis was incomplete, and it required fresh determination on remand. en-us Mon, 08 Feb 1988 00:00:00 +0530 Wed, 12 Jan 2011 15:22:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61407 A sales-tax liability that arose and was determined during the relevant accounting period was deductible in that year, because the liability had crystallised within the year. A charge levied for delayed payment under section 36(3) of the Bombay Sales-tax Act was treated as compensatory in nature, functioning as interest for deprivation of Government funds rather than a punitive penalty, and was therefore allowable as a business deduction. The claim relating to forfeiture of excess sales-tax collection could not be decided on the existing record, as the relevant factual basis was incomplete, and it required fresh determination on remand. Case-Laws Income Tax Mon, 08 Feb 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61407