1987 (12) TMI 70

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.... D-Bench of the Tribunal and disposed of by their Order dt. 30th July, 1983. One of the points that the Tribunal was called upon to decide was the admissibility of deduction of an amount of Rs. 90,039 being a sales-tax penalty levied under s. 36(3) of the Bombay ST Act. The Tribunal, relying on a decision of the Supreme Court in the case of Haji Aziz and Abdul Shakoor Bros. vs. CIT (1961) 41 ITR 3....

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....the asst. yr. 1981-82. The misc. petition was considered by D-Bench of the Tribunal in MA No. 108(Bom)/83 and by their Order dt. 28th Jan., 1987 they re-called the earlier Order dt. 30th July, 1983. Thus, the matter has been re-fixed for hearing before us. 2. Shri Keshav Prasad relied on the earlier order of the Tribunal. On the other hand, Shri V.H. Patil filed a copy of the decision of E-Benc....

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....f Sales-tax, Maharashtra, Bombay vs. M/s Rajendra Motors to the effect that penalty under s. 36(3) was not interest but penalty which is leviable on the basis of law as obtaining on that day, held that the Spl. Bench proceeded on the basis that penalty imposed under s. 36(3) of the ST Act is a penalty and not interest; but what has been held by the Spl. Bench is that though it is a penalty, it is ....