Taxpayer Can Deduct Delayed Sales Tax and Interest Payments; Not Considered Penalties u/s 37(1) of Income Tax Act.

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....Delayed payment of certain Govt. dues - the differential amount of sales tax (Normal rate – Concessional Rate) and interest on delayed payment of Sales Tax amounting deposited by the assessee is not in the nature of penalty for contravention of any law. Therefore, the assessee is entitled for deduction of such amount u/s 37(1) - AT....