Law:

Section:

Income-tax---Admissible deduction--Interest -paid by assessee to Sales Tax Department on arrears of sales tax being a revenue expenditure and not a penalty paid for infringement of any law and such arrears having been utilised by assessee for the purpose of its business is admissible deduction. Rajasthan Central Stores (P.) Ltd. v. C I T (1985) 156 1 T R 90 (Raj.); Mahalakshmi Sugar Mills Co. v. C I T (1980) 123 1 T R 429 and Rajasthan Central Store (P.) Ltd.'s case (1985) 1561 T R 90 (Raj.) ref. JUDGMENT KASLIWAL, J.--The 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?" In Rajasthan Central Stores (P.) Ltd. v. C I T (1985) 156 I T R 90 (Raj.), a Division Bench of this Court was called upon to give its opinion on the following question of law. "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions for payment of penal interest amounting to Rs.5,050 on sales tax collections withheld by the assessee and utilised for the purpose of its own business, was not admissible as a deduction in computing its total income?" While deciding the above question, several cases of the High Courts and the Supreme Court were considered by the Bench. In Mahalakshmi Sugar Mills Co. v. C I T (1980) 123 1 T R 429,…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492