Disallowances
This query is : Resolved
shriyeshjain
(Querist)
18 April 2012
The IncomeTax, Sales Tax, wealth Tax and any other tax.
the payment of this taxes and the penalties and the interest on delay is allow or disallowed.
thanku.
the payment of this taxes and the penalties and the interest on delay is allow or disallowed.
thanku.
CA. Sameer Kashikar
(Expert)
18 April 2012
Dear Shriyesh,
Payment of income-tax is not deductible as per section 40(a)(ii);
hence, interest under sections 139, 215 and 217 which is to be regarded as accretion to tax, cannot also be allowed to be deducted - Assam Forest Products (P.) Ltd. v. CIT [1989] 180 ITR 478 (Gauhati).
Note : On the same principle, interest payable under sections 220(2), 234A, 234B or 234C is also not deductible.
Sales tax and interest for late payment of sales tax is allowed as deduction
Any Provisions for sales tax, custom duty, excise, (However, actual payment of sales tax, excise duty or custom duty is allowed as deduction subject to Sec. 43B.)
Penalties for breach of Law is not allowed as deduction
Payment of income-tax is not deductible as per section 40(a)(ii);
hence, interest under sections 139, 215 and 217 which is to be regarded as accretion to tax, cannot also be allowed to be deducted - Assam Forest Products (P.) Ltd. v. CIT [1989] 180 ITR 478 (Gauhati).
Note : On the same principle, interest payable under sections 220(2), 234A, 234B or 234C is also not deductible.
Sales tax and interest for late payment of sales tax is allowed as deduction
Any Provisions for sales tax, custom duty, excise, (However, actual payment of sales tax, excise duty or custom duty is allowed as deduction subject to Sec. 43B.)
Penalties for breach of Law is not allowed as deduction
CA PRAVEEN SINGH
(Expert)
19 April 2012
U/S 43B:- DEDUCTION ALLOWED ON PAYMENT BASIS.
ABOVE TAXES IS ALLOWED ON PAID BASIS.
INTEREST & PENALTIES IS NOT ALLOWED.
ABOVE TAXES IS ALLOWED ON PAID BASIS.
INTEREST & PENALTIES IS NOT ALLOWED.
20 April 2012
Sameer and Prveen both the experts have given proper and to the point reply and accordingly I agree with them
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