Case Law Details
Premier Irrigation Adritec (P) Ltd. Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that interest payment on delayed deposit of Income Tax (whether in form of TDS or otherwise) is not an allowable expenditure.
Facts- The assessee has agitated the confirmation of addition of Rs.10,10,774/- made by the Assessing Officer invoking the provisions to section 43B of the Act for delay in depositing employees contribution to provident fund and employees state insurance.
The assessee has agitated the confirmation of disallowance of Rs.4,99,022/- made by the Assessing Officer in respect of interest on delayed deposit of ‘taxes deducted at source’ (TDS).
Conclusion- The issue relating to grounds taken by the assessee have come to rest by the recent verdict of the Hon’ble Supreme Court in Checkmate Services Pvt. Ltd. Vs. CIT wherein it has been held that “deduction u/s 36(1)(va) in respect of delayed deposit of amount collected towards employees’ contribution to PF cannot be claimed when deposited within the due date of filing of return even when read with Section 43B of the Income-tax Act,1961.”
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