9911796707
TMI Blog1986 (3) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ending on March 31, 1972. The assessee claimed deduction of an amount of Rs. 30,107 which was stated to have been paid on account of interest for late payment of provident fund dues in respect of a colliery owned by the assessee. The Income-tax Officer disallowed the claim on the ground that the amount paid represented a penalty imposed on the assessee. In an appeal by the assessee, the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not allowable as deduction in computing the income of the assessee. It was urged on behalf of the assessee that in view of the decision of the Appellate Tribunal for the assessment year 1969-70 in the case of the assessee allowing interest for late payment of cess, the assessee should be allowed a deduction on account of interest paid for late payment of provident fund dues. The Tribunal ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature of a penalty and was not allowable as a deduction. In support of his contention, the learned advocate cited a decision of the Allahabad High Court in CIT v. J. K. Cotton Spinning and Weaving Mills Co. [1980] 123 ITR 911 (All), where the Allahabad High Court held that the amount paid by the assessee to the Government for non-fulfilment of the export obligation at the prescribed rate and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under section 3(3) of the U.P. Sugarcane Cess Act, 1956, was a simple interest chargeable automatically in case of delay in payment of cess. Such interest was held to be part and parcel of the liability to pay cess and was an accretion to the cess payment. The Supreme Court noted that there were other provisions in the said Act which imposed penalty by way of penal interest, fines and imprisonm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid Act under which interest could be levied for delayed payment of provident fund dues. In that view of the matter, we are unable to answer the question referred to us in the absence of further facts to indicate how and in what manner and under which provision of law interest was charged to the assessee by the provident fund authorities. We, therefore, send the matter back to the Tribunal with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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