Deduction allowable on interest on late deposit of VAT, Service Tax, TDS

M/s. Emdee Digitronics Pvt. Ltd Vs PCIT (ITAT Kolkata) Conclusion: Interest paid on late deposit of VAT, Service Tax, TDS etc, was not penal in nature and the same was allowable as business expenditure under section 37(1). Held: CIT exercised his jurisdiction under section 263 to revise the order passed by AO under section 143(3) on the ground that assessee company had debited expenditure under the head Interest on delay payment of VAT, Service Tax and TDS and since such expenses were penal in nature, was not deductible u/s 37(1). However, during the scrutiny assessment u/s 143(3), these expen...