2009 (12) TMI 1034

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..... spondent. ORDER Vimal Gandhi, This appeal by the Revenue and cross-objection by the assessee for asst. yr. 2004-05 are directed against order of CIT(A)-VI, New Delhi. Cross-objection of assessee merely supports the impugned order and is not maintainable. The same is accordingly dismissed. 2. We proceed to consider appeal of the Revenue in which following effective grounds have been placed : .....

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..... amount as a penalty and disallowed the same. However, on appeal, learned C1T(A) held that payment made was of compensatory nature and therefore, permissible as a business deduction. He deleted the disallowance. 4. In the appellate proceedings before us, the learned Departmental Representative submitted that payment of interest on delayed payment of service-tax was penalty and therefore, rightly d .....

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..... d that it was compensatory and therefore, a permissible deduction. We have examined relevant provisions of section 75 and are of the view that interest paid for the delayed payment of service-tax is compensatory and has the same character as service-tax. There is no dispute that service-tax is a permissible deduction. In our opinion, the interest should also be allowed in the same manner. In the l .....

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..... t. On facts and evidence on record, we are of the view that finding recorded by learned CIT(A) is unassailable. It would be relevant to reproduce confirmation issued by Messee Dusseldorf GmbH for the use of logo (p. 8 of the paper book). It is as under : "Dear Mr. Schmidt, As you know, Messee Dusseldorf GmbH owns the logo Interkama. As per your request we allow you to use the logo Interkama .....

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..... seldorf GmbH permitted the assessee the use of logo for limited period between 24th to 27th Sept., 2003 and between 5th Dec, 2003 to 9th Dec, 2003 at trade fairs held at Hyderabad. No enduring benefit was received by the assessee. Expenditure was incurred wholly and exclusively for purposes of business and was rightly allowed by the learned CIT(A) as a revenue deduction. We confirm his finding and .....

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