Interest on late payment of TDS not allowable as business expenditure

Universal Energies Ltd. Vs DCIT (ITAT Delhi)

Held that interest payment on late payment of TDS is not eligible business expenditure for deduction and it is not compensatory in nature.

Facts- The assessee vide its letter dated 12.03.2015 submitted copy of ledger account of interest on TDS. The assessee itself agreed that interest on TDS amounting to Rs. 9,70,248/- has not been added back in the computation of Income. Interest on TDS is not allowable as per provision of Income Tax Act, 1961. Accordingly

Please become a Premium member. If you are already a Premium member, login here to access the full content.