Interest on delayed TDS payment not allowable as Deduction

Rajendra Sukhdev Mirgane Vs DCIT (ITAT Pune) ITAT held that interest on delayed payment of TDS cannot be allowed as deduction in terms of section 40(a)(ii) of Income Tax Act, 1961. It is seen as an admitted position that the assessee was required to deduct and pay tax at source. There was delay in making the payment of tax, which led to the charging of interest by the Income-tax Department to the tune of Rs.3,13,414/-. In our considered opinion, neither the amount of income-tax nor interest on income-tax can be allowed as deduction, which is strictly prohibited in terms of section 40(a)(ii) of...