Interest on delayed TDS payment is not an allowable business deduction

Expat Engineering India Ltd. Vs ACIT (ITAT Bangalore) In a recent case, Expat Engineering India Ltd. faced a challenge regarding the disallowance of interest on delayed Tax Deducted at Source (TDS) payment. The Income Tax Appellate Tribunal (ITAT) in Bangalore, while considering Ground Nos. 3 & 4, explored whether the interest paid on late payment of TDS is a deductible business expense. Let’s delve into the details of the case and the Tribunal’s decision. Case Background: Expat Engineering India Ltd. argued that the interest paid on late TDS payment is not in the nature of a ...