Interest on late deposit of TDS allowable u/s 37

DCIT Vs M/s. Rungta Mines Ltd (ITAT Kolkata)

Conclusion: Interest expenses claimed by assessee on account of delayed deposit of TDS liability was allowable under section 37(1) as the TDS amount did not represent the tax of  assessee but it was the tax of the party which had been paid by assessee.

Held: In the present case, AO disallowed deduction of interest on late deposits of TDS liability. It was held TDS amount did not represent tax of assessee but it was tax of party, on whose behalf it was deducted and pai

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