Case Law Details
Expat Engineering India Ltd. Vs DCIT (ITAT Bangalore)
Levy of interest on delayed payment of TDS u/s.201(1A) though held to compensatory in nature, the allowability of the same cannot be decided simply based on that. The levy of 201(1A) is a levy for delay in the remittance of tax that is deducted and not paid into the government account and is levied towards the use of funds belonging to the exchequer. The interest u/s.201(1A) can be equated to the levy of interest u/s.234. Interest u/s.234 is a levy on delay in the payment of income tax and the TDS is nothing but the income tax paid on behalf of the payee and therefore the interest on the same u/s.201(1A) is also in the nature of interest levied on the income tax. On that count also interest on delayed payment of TDS cannot be claimed as a deduction.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The appeal is directed against the order of the CIT(Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 12.8.2021 for the assessment year 2017-18.
2. The assessee company is engaged in the business of construction services in respect of commercial/industrial building and civil structures. It filed the return of income u/s. 139(1) of the Income-tax Act, 1961 [the Act] on 21.3.2018 declaring income of Rs.3,21,57,430. The AO made certain disallowances in the assessment order u/s. 143(3) of the Act which was confirmed by the CIT(Appeals). Aggrieved, the assessee is in appeal before the Tribunal.
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