Dismissing the appeal of the revenue the Tribunal held that interest paid on delayed payment of service tax is compensatory in nature hence allowable as revenue expenditure . ( AY. 2013-14)
DCIT v. Sri Radhakrishna Shipping Ltd. (2019) 179 ITD 139 (Mum) (Trib.)
S.37(1): Business expenditure -Interest paid on delayed payment of service tax is compensatory in nature – allowable as deduction . Finance Act , 1994 , S 75 , 76 ]