Interest on Delayed Payment of VAT and TDS allowable

ITO Vs M/s. Lakshdweep Development Corporation Limited (ITAT Cochin)

Interest on delayed payment of VAT and TDS is only compensatory and is not penal in nature. Therefore, the CIT(A) has correctly deleted the disallowance made for the interest expenditure claimed on delayed payment of VAT and TDS.

FULL TEXT OF THE ITAT JUDGMENT

These appeals at the instance of the Revenue are directed against two separate orders of the CIT(A), both dated 06.04.2018. The relevant assessment years are 2013-2014 and 2014-20 15.

2. Since common issues are raised in these appeals, they were heard together and are being disposed off by this consolidated order.

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