S. 37(1) : Business expenditure-Illegal payments-Interest-Bogus purchases–Survey by Maharashtra VAT Authorities-Interest paid under S. 30(2) of MVAT Act, 2002 was not penal in nature hence allowable ; however, interest paid under S. 30(4) of MVAT Act, 2002 which was in addition to interest payable under section 30(2) was penal in nature and could not be allowed in view of provision of Explanation 1 to S.37(1) [ MVAT Act, 2002, S. 25, 29(3), 30(2), 30(4)]
ACIT v. Gini & Jony Ltd. (2018) 172 ITD 472/ 67 ITR 45 (SN)( 2019) 197 TTJ 322/ 178 DTR 114 (Mum.)(Trib.)