1989 (1) TMI 65 - HC - Income Tax

Summary

The High Court of Gauhati ruled that interest paid under section 35A of the Assam Sales Tax Act is deductible under section 37 of the Income-tax Act as it is compensatory and not penal in nature. The court relied on previous judgments and held that the interest is part of the tax liability and not a penalty. The court answered the question in favor of the assessee.