My Question
VAT Assessment Done of Earlier Year, and CTO Find That More VAT Input Taken.
Now CTO Charged 2000 Rs. Penalty and Difference Amt 3 Lacs and 80000/- Interest on That.total 382000/-
Now Wheather This is Alloowable Expenses Under IT Act.
Menu
Income Tax
Replies (10)
as per proviso to sec 37 penalty of rs 2000 will be disallowed.however,diff amt of vat and int will be allowable sub to 43B i.e. on payment basis
r u sure?
it will be allowed if the same hasnt been allowed last year....
penalty of Rs.2000 cannot be allowed. interest of 80k also to be disallowed, coz it is an expense as a result of delay and mistake on the part of assessee
i think the above int is compensatory in nature and not penal,so the same can be allowed u/s 37......
ya. i think i made a flaw. Interest is allowable. pls refer LAKSHMANDAS MATHURADAS VS CIT(1997) CASE. SORRY FOR THE FLAW. MR. RONIT IS CORRECT
penalty not allowed as deduction ........................
Thnaks Ronit
thanks ronit....
Recent Threads
Related Threads
CAclubindia
