Interest on Delayed TDS Payment allowable under section 37(1)

Delhi Cargo Service Center Vs ACIT (ITAT Delhi) Disallowance of Rs. 94,662/- on account of interest payment on TDS deposited to the Income Tax Department-  The Ld. AO had proposed the impugned disallowance under section 43B which allows deduction of statutory dues in the year of actual payment irrespective of the year in which the liability was incurred. The case of the assessee all along has been that the impugned interest has been paid in AY 2015-16 and therefore it is an allowable deduction. However, after receipt of the direction of the DRP to verify the evidence of payment and allow the ...