Saraya Sugar Mills (P.) Ltd. v. CIT

116 ITR 387High Court1979#2383 most cited

What is Saraya Sugar Mills (P.) Ltd. v. CIT authority for?

Interest on arrears of sales tax is penal in nature, not compensatory, thereby affecting its deductibility as a business expenditure under the Income Tax Act.

48

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2026.

Also referred to as

Saraya Sugar Mills (P.) Ltd. v. CIT · 116 ITR 387 · Section 37(1) · Section 36(1)(va) · interest on sales tax arrears · penal interest · compensatory interest · deductibility of interest · business expenditure · Allahabad High Court · nature of interest payment

Sections most often in play

Section 143(3)Section 2(24)(x)Section 201(1A)Section 36(1)(va)Section 37(1)Section 37Section 127Section 142(1)

Issues it is cited on

section 226section 215section 24asection 35esection 269uasection 2(43)section 75section 14a(1)section 211section 2(28a)interest under section 201(1a)section 127(1)

Judgments citing Saraya Sugar Mills (P.) Ltd. v. CIT

KANKARIYA AUTOMOBILES PVT LTD,AHILYANAGAR vs. ITO WARD-1, AHILYANAGAR, AHILYANAGAR

In the result, the appeal filed by the assessee is allowed

ITA 1932/PUN/2025[2014-15]Status: DisposedITAT Pune13 Feb 2026AY 2014-15

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2014-15

For Appellant: Shri Prasad S BhandariFor Respondent: Shri Deepak Kumar Kedia, JCIT
Section 142(1)Section 143(3)Section 144Section 147Section 148Section 201Section 36(1)(va)

…decision of Hon’ble Supreme Court in the case of Lachmandas Mathuradas vs. CIT (supra) held that Hon’ble Supreme Court following the decision of Full Bench of Hon’ble Allahabad High Court in the case of Saraya Sugar Mills (P.) Ltd. vs. CIT reported in (1979) 116 ITR 387 (All), has decided the issue against the assessee. However, a perusal of the order of Hon’ble Supreme Court shows that the Hon’ble Supreme Court in fact has decided the issue in favour of the assessee by observing as under: “1. This appeal arises out of the Income-tax Reference No. 54 of 1978 , wherein the Income-tax Appellate Tribunal, Delhi Be…

DCIT-14(1)(2), MUMBAI vs. M/S. EKTA EVERGLADE HOMES PVT LTD.,, MUMBAI

In the result, the ground raised by the revenue is allowed

ITA 1489/MUM/2023[2016-17]Status: DisposedITAT Mumbai24 Nov 2025AY 2016-17
For Appellant: Shri Shobit MishraFor Respondent: Ms. Neena Jeph (CIT DR)
Section 143(3)Section 153ASection 250Section 92C

…n arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its\nFull Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

DCIT-14(1)(2), MUMBAI vs. M/S. EKTA EVERGLADE HOMES PVT LTD.,, MUMBAI

In the result, the ground raised by the revenue is allowed

ITA 1488/MUM/2023[2015-16]Status: DisposedITAT Mumbai24 Nov 2025AY 2015-16
For Appellant: Shri Shobit MishraFor Respondent: Ms. Neena Jeph (CIT DR)
Section 143(3)Section 153ASection 250Section 92C

…arrears\nof sales tax is penal in nature and has rejected the contention of the assessee that it is\ncompensatory in nature. In taking the said view the High Court has placed reliance on its\nFull Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The\nlearned counsel appearing for the appellant-assessee states that the said judgment of\nthe Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg.\nWorks Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on\narrears of tax is compensatory in nature and not penal. This questi…

DCIT, CIR-14(1)(2), MUMBAI vs. M/S. EKTA EVEGLADE HOMES PVT LTD.,, MUMBAI

In the result, the ground raised by the revenue is allowed

ITA 1486/MUM/2023[2013-14]Status: DisposedITAT Mumbai24 Nov 2025AY 2013-14

Bench: SHRI ANIKESH BANERJEE (Judicial Member), SMT. RENU JAUHRI (Accountant Member)

For Appellant: Shri Shobit MishraFor Respondent: Ms. Neena Jeph (CIT DR)
Section 143(3)Section 153ASection 250Section 92C

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, GUWAHATI, GUWAHATI, ASSAM vs. ASSAM POWER DISTRIBUTION COMPANY LIMITED, GUWAHATI

The appeal is allowed and questions Nos

ITA 159/GTY/2025[2016-17]Status: DisposedITAT Guwahati25 Aug 2025AY 2016-17

Bench: The Hon'Ble Income Tax Appellate Tribunal (Itat) Was On Or Before. However, The Appeal Was Filed Before The Hon'Ble

Section 250

…est on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench decision in Saraya Sugar Mills P. Ltd. v. CIT [1979] 116 ITR 387 (All). Learned counsel appearing for the appellant -assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engineering Works Ltd. v. CIT[1983] 144 ITR 732 (All), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal This question has al…

SJS MOTORS,MEERUT vs. CIRCLE 1(1) , MEERUT

In the result, the appeal of the Assessee is allowed

ITA 5025/DEL/2024[2018-19]Status: DisposedITAT Delhi04 Jul 2025AY 2018-19

Bench: Shri Vikas Awasthy & Shri M. Balaganeshsjs Motors, Vs. Income Tax Officer, 58, Opp Dewan Circle-1(1), Meerut Textile, Delhi Road, Meerut (Appellant) (Respondent) Pan: Abbfs1262L Assessee By : Shri Rohit Aggarwal, Ca Revenue By: Shri Manish Gupta, Sr. Dr Date Of Hearing 20/05/2025 Date Of Pronouncement 04/07/2025

For Appellant: Shri Rohit Aggarwal, CAFor Respondent: Shri manish Gupta, Sr. DR
Section 143(3)Section 37

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest SJS Motors on arrears of tax is compensatory in nature and not penal. Thi…

IVTL INFOVIEW TECHNOLOGIES PVT. LTD.,CHENNAI vs. DCIT, CORPORATE CIRCLE-II(2), CHENNAI

In the result, appeal filed by the assessee stands allowed

ITA 2916/CHNY/2024[2015-16]Status: DisposedITAT Chennai30 Jan 2025AY 2015-16

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri Jagadishआयकरअपील सं./ Ita No.2916/Chny/2024 (िनधा"रणवष" / Assessment Year: 2015-2016) Ivtl Infoview Technologies Vs. The Deputy Commissioner Of Private Limited, Income Tax, No.2/319, 3F, Corporate Circle Ii(2) Vishranthi Melaram Towers, Chennai 600 034. Oggiam Thoraipakkam, Chennai 600 097. [Pan: Aaaci 7550A] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Ms. S. Vidhya, C.A., ""यथ" क" ओर से /Respondent By : Ms. Pushpa Hemachand, Jcit. सुनवाई क" तार"ख/Date Of Hearing : 22.01.2025 घोषणा क" तार"ख /Date Of Pronouncement : 30.01.2025 आदेश / O R D E R Per Manu Kumar Giri ()

For Appellant: Ms. S. Vidhya, C.AFor Respondent: Ms. Pushpa Hemachand, JCIT
Section 143(3)Section 2(24)(x)Section 36(1)Section 36(1)(va)

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

ACIT 14 (1)(2), MUMBAI, MUMBAI vs. SHRIRAM CHITS MAHARASTRA LIMITED, MUMBAI

In the result, the appeal of the Revenue is dismissed

ITA 66/MUM/2024[2017-18]Status: DisposedITAT Mumbai03 Jun 2024AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2017-18

For Appellant: Mr. Raghav MenonFor Respondent: Mr. Ashok Kumar Ambastha, Sr. DR
Section 37(1)

…ensatory in nature. In taking the said view the High Shriram Chits Maharashtra Ltd. Shriram Chits 7 Court has placed reliance on its Full Bench’s decision in Court has placed reliance on its Full Bench’s decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) 16 ITR 387 (All.) The learned counsel appearing for the appellant The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni reversed by the larger Bench of the High Court…

DY. COMMISSIONER OF INCOME TAX, CC-4(2), CENTRAL RANGE-4, MUMBAI vs. M/S NEEV INFRASTRUCTURE PVT LTD, MUMBAI

ITA 1537/MUM/2023[2015-16]Status: DisposedITAT Mumbai26 Feb 2024AY 2015-16

Bench: Shri Aby T Varkey & Shri Gagan Goyal

For Appellant: Shri Ashok Kumar Ambastha, Ld. DRFor Respondent: Shri Rahul Hakani, Ld. AR
Section 143(3)Section 14ASection 250Section 37(1)

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

THE DCIT CIRCLE 5(1), BHOPAL vs. M/S L N MALVIYA INFRA PROJECTS P LTD, BHOPAL

In the result, appeal of the revenue is partly allowed

ITA 189/IND/2023[2021-2022]Status: DisposedITAT Indore09 Jan 2024AY 2021-2022

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanidcit, Circle 5(1) M/S. L.N. Malviya Infra Projects Bhopal Pvt. Ltd. Plot No.29, F/F Sector, Dwarka Vs. New Delhi

Section 234ASection 3(3)Section 37(1)

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER DCIT, Circle 5(1) M/s. L.N. Malviya Infra Projects Bhopal Pvt. Ltd. Plot No.29, F/F Sector, Dwarka Vs. New Delhi (Appellant / Assessee) (Respondent/ Revenue) PAN: AACCL 1320 Assessee by Shri Kirti Kumar Daga, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 04.01.2024 Date of Pronouncement 09.01.2024 O R D E R Per Vijay Pal Rao, JM: This appeal by the Revenue is directed against the order dated 22.03.2023 of Commissioner o…

AIR INDIA LTD,MUMBAI vs. DCIT 5(1), MUMBAI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4467/MUM/2018[2010-11]Status: DisposedITAT Mumbai13 Dec 2022AY 2010-11

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

AIR INDIA LTD,MUMBAI vs. DCIT 5(1)(1), MUMBAI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4544/MUM/2018[2012-13]Status: DisposedITAT Mumbai07 Dec 2022AY 2012-13

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

AIR INDIA LTD,MUMBAI vs. DCIT 5(1), MUMBAI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4518/MUM/2018[2011-12]Status: DisposedITAT Mumbai07 Dec 2022AY 2011-12

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

DCIT 5(1)(1), MUMBAI vs. AIR INDIA LTD, MUMBAI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4486/MUM/2018[2010-11]Status: DisposedITAT Mumbai07 Dec 2022AY 2010-11

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

DCIT 5(1)(1), MUMBAI vs. AIR INDIA LTD, MUMBAI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4485/MUM/2018[2011-12]Status: DisposedITAT Mumbai07 Dec 2022AY 2011-12

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

M/S KARNATAKA EMTA COAL MINES LIMITED ,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, assessee’s appeals are partly allowed for statistical purposes

ITA 2139/BANG/2018[2014-15]Status: DisposedITAT Bangalore14 Nov 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Shri Gudimella V.P. Pavan Kumar &
Section 32(1)(ii)Section 35ESection 37

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

M/S KARNATAKA EMTA COAL MINES LIMITED ,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, assessee’s appeals are partly allowed for statistical purposes

ITA 2138/BANG/2018[2013-14]Status: DisposedITAT Bangalore14 Nov 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Shri Gudimella V.P. Pavan Kumar &
Section 32(1)(ii)Section 35ESection 37

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

M/S KARNATAKA EMTA COAL MINES LIMITED ,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, assessee’s appeals are partly allowed for statistical purposes

ITA 2137/BANG/2018[2012-13]Status: DisposedITAT Bangalore14 Nov 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Shri Gudimella V.P. Pavan Kumar &
Section 32(1)(ii)Section 35ESection 37

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

M/S KARNATAKA EMTA COAL MINES LIMITED ,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, assessee’s appeals are partly allowed for statistical purposes

ITA 2136/BANG/2018[2011-12]Status: DisposedITAT Bangalore14 Nov 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Shri Gudimella V.P. Pavan Kumar &
Section 32(1)(ii)Section 35ESection 37

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

M/S KARNATAKA EMTA COAL MINES LIMITED ,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, assessee’s appeals are partly allowed for statistical purposes

ITA 2135/BANG/2018[2010-11]Status: DisposedITAT Bangalore14 Nov 2022AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Shri Gudimella V.P. Pavan Kumar &
Section 32(1)(ii)Section 35ESection 37

…on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732 (All.) (FB), wherein it has been held that interest on arrears of tax is compensatory in nature and not penal. This question h…

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Saraya Sugar Mills (P.) Ltd. v. CIT (116 ITR 387) — Cited in 48 Judgments | BharatTax