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2015 (2) TMI 352 - AT - Income TaxAllowable expenditure - Debit in P&L A/c as interest on custom duty - Disallowance of penalty on Government duties - Held that:- there is no dispute that the payment debited by the assessee in its P & L account relates to interest on custom duty and not related to any penalty amount as is evident form copy of settlement order. This fact is also establishes from paper book page 13 which specifically mentions the amount as interest - interest on indirect taxes takes the shape of taxes and are allowable under the provisions of the Act - Delhi High Court in the case of CIT vs Enchante Jewellery Ltd. in [2012 (12) TMI 169 - DELHI HIGH COURT] has clearly held that payment of interest on custom duty is not hit by explanation below section 37(1) of the Act and had decided the issue in favour of assessee. - interest payment on custom duty are expenses allowable under the provisions of the Act - Decided in favour of assesse.
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