Differential Sales Tax paid for non-deposit of forms is allowable as deduction

Gem Electro Mechanicals Pvt. Ltd. Vs ACIT (ITAT Jaipur)

Since there was delay in depositing the aforesaid amount of sales tax, therefore, the assessee was made to deposit interest amounting to Rs. 2,71,826/- on such delayed payment of sales tax amount and Rs. 3,152/-on delayed payment of Excise/Custom Duty & Service Tax. The AO during the course of assessment proceeding disallowed the claim of the assessee for the sole reason that same had been incurred on account of violation of law.

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