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.

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