Interest on delayed remittance of TDS not deductible as business expense u/s. 37(1)

Nippon Koei Co. Ltd. Vs ADIT (International Taxation) (ITAT Hyderabad)

ITAT Hyderabad held that interest paid on account of delayed remittance of TDS cannot be treated as business expenditure under section 37(1) of the Income Tax Act. Accordingly, order disallowing the same is upheld.

Facts- The assessee is a foreign company engaged in the business of engineering, consultancy, and electric power. The assessee filed its return of income for the Assessment Year 2021-22 declaring total income of Rs.6,27,12,098/- for its branch office in India. The case of the

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