1985 (8) TMI 27

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....rt by the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, by its order dated January 31, 1976, under section 256(1) of the Income-tax Act, 1961. "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 under section II B of the Rajasthan Sales Tax Act, 1954, ....

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....ately discuss the law on the subject as the matter stands concluded by a decision of a Division Bench of this court in the case of the assessee itself, relating to the earlier year, in G G. Sanghi v. CIT [1985] 156 ITR 95. It was held by this court that the interest payable under section 11B of the Rajasthan Sales Tax Act was not a penalty but a revenue expenditure, which was deductible under sect....