Inadmissibility of certain interest payments as deduction under section 37(1)/57(iii) of the Income-tax Act, 1961

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....come-tax/ All Directors-General of Income-tax. Sir, A Central Act called the "Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (No. 32 of 1993)**", has been enacted with effect from September 23, 1992, which provides for payment of certain amount of mandatory interest to the buyers of goods and services from small scale industrial undertakings an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Act, 1961, the amount of such interest payable or paid by any buyer shall not, for the purposes of computation of income under the Income-tax Act, be allowed as deduction. The term " supplier " has been defined to mean an ancillary industrial undertaking or a small scale industrial undertaking defined respectively under clause (aa) and clause (j) of section 3 of the Industries (Development and ....