Interest paid under S.30(1) of Jharkhand VAT Act 2005 being compensatory in nature, is allowable deduction as business expenditure Penalties imposed is not allowable deduction.(AY. 2010-11)
Bokaro Power Supply Co. Ltd. v. Dy. CIT (2018) 191 TTJ 22/163 DTR 259 (Delhi)(Trib.)
S. 37(1) : Business expenditure – Interest under Jharkhand VAT Act, 2005 being compensatory nature is allowable as deduction. Penalties being not compensatory nature is held to be not allowable [ Jharkhand VAT Act , 2005 S. 30(1), 30(3), 30(4)(d),63(3) ]