Case Law Details
New Modern Bazaar Vs ITO (ITAT Delhi)
The conditions of the allowability of expenditure is laid down u/s 37 (1) of the income tax act which speaks that any expenditure which is not a capital expenditure or personal expenses of the assessee which is laid out or expended wholly and exclusively for the purpose of the business shall be allowed in computing the income chargeable Under the head profits and gains of business or profession. Payment of interest on late payment of TDS cannot be considered as an expenditure led out or expended wholly and exclusively for the purpose of the business because late payment of TDS cannot be considered as part of the business of the assessee.
In view of the above facts we hold that payment of interest on late deposit of tax deduction at source by the assessee leviable u/s 201 (1A) of the act is neither an expenditure only and exclusively incurred for the purpose of the business and therefore same is not allowable as deduction u/s 37(1) of the In view of this, various grounds raised by the assessee on this in the issue are dismissed.
FULL TEXT OF THE ITAT JUDGEMENT
1. This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)–22, New Delhi, dated 26.10.2017, for assessment year 2014-15.
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