1986 (9) TMI 46

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....he Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, has referred the following question of law for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest paid by the assessee to the Sales Tax Department on the arrears of sales tax was an admissible deduction under section 37 of the Income-tax Act, 1961 ? "....

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....e said Act provided that any arrear of cess not paid on the date prescribed under sub-section (2) shall carry interest at 6% per annum from such date to the date of payment. The Supreme Court in the above case held that the interest that was paid under section 3(3) of the Cess Act could not be described as a penalty paid for an infringement of the law and that it was in the nature of revenue expen....