Interest for late payment of TDS is not a deductible expenditure

Jindal Aluminium Limited Vs DCIT (ITAT Bangalore) We have heard rival submissions and perused the material on record. The Hon’ble Apex Court in the case of Bharat Commerce & Industry v. CIT reported in 230 ITR 733 had held that interest for late payment of direct taxes is not a deductible expenditure. In view of the clear dictum laid down by the Hon’ble Apex Court, the interest expenditure of RS.24,644 paid u/s 201(1A) of the I.T.Act cannot be allowed as a deduction. It is ordered accordingly. FULL TEXT OF THE ORDER OF ITAT BANGALORE These appeals at the instance of the assessee are d...