Interest on Delayed Tax Payments Deductible u/s 37(1) of the Income Tax Act, Aligns with Legal Precedents.

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....Deduction of expenditure u/s 37(1) - It is settled position of law that interest on delay in payment of tax is also part and parcel of tax and it is equally settled position of law that Service Tax paid is also a permissible deduction. - interest is only of compensatory nature and does not take a colour of penalty.....