1978 (11) TMI 88

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..... . For the asst. yr. 1976-77, corresponding to the previous year ended 31st March, 76, the assessee filed a return along with a profit and loss account showing net profit of Rs. 62,164. The ITO found that the assessee paid a sum of Rs. 7,769 as interest to the sales-tax Department for delay in making payment of the admitted tax in time. The assessee claimed this interest was analogous to the intere .....

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..... ax and was rightly allowed by the AAC. Reliance was placed on the decision of the Allahabad High Court in the case of Kamlapat Motialal(2). 4. On a careful consideration of the rival submissions, we are of the opinion that there are no merits in this appeal. The admitted facts are that the assessee not having paid the sales-tax in time, interest was levied under s. 22A of the Assam Finance (Sale .....

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..... t was an addition to the sales-tax which itself was an admissible business expenditure. This is a view taken by the Allahabad High Court also in the case of interest paid for delay in the payment of purchase-tax which is an analogous case. The decision of the Calcutta High Court relied on by the Revenue has no application to the facts of this case since that related to the levy of interest of dela .....

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