Disallowance of payment of liquidated damages and interest on ...

Income Tax

August 23, 2021

Disallowance of payment of liquidated damages and interest on delayed payment of Value Added Tax (VAT) as deduction - any payment made for breach of contractual obligation in the form of liquidated damages, cannot be construed as penal in nature. Hence the provisions of Explanation 1 to section 37(1) of the Act cannot be brought into operation at all in the facts of the instant case. - AT

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Disallowance of payment of liquidated damages and interest on ...

Income Tax

August 23, 2021

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