Interest on delayed payment of custom duty deductible u/s. 37: ITAT Bangalore

Advertisement Mangalore chemicals & Fertilizers Ltd Vs ACIT (ITAT Bangalore) ITAT Bangalore held that interest due to delayed payment of custom duty is deductible u/s 37 of the Act as it is an accretion to the main payment and not a penalty and accordingly allowable as deduction. Facts- During the course of reassessment proceedings, it was noticed that for the purpose of manufacture of Fertilizers, the assessee company imports some of the raw materials, on which the assessee Company has to pay customs duty depending on the classification of the raw material. Based on the certain classif...