Interest paid on delay in paying customs duty is deductible

M/s M. J. Exports Pvt. Ltd. Vs DCIT (ITAT Mumbai) The facts in brief are that the Collector of customs levied customs duty and penalty on the goods imported by the assessee in F.Y. 1988-89 vide order dated 28th January 1994 and subsequently, levied interest for not paying the customs duty and penalty in time. The assessee charged Rs.3,88,05,315/- as interest to profit and loss account by claiming that the liability crystallized in the year under appeal since the payment of interest was made on various dates between 12.12.2006 to 28.08.2007. The learned Assessing Officer disallowed the amount o...