Interest on Late TDS Payment Not Deductible; No Addition Without Incriminating Material: ITAT Hyderabad

Advertisement Upkar Infra Projects Private Limited Vs ACIT (ITAT Hyderabad) Interest paid on late payment of TDS was not allowable as business deduction and no addition in search proceedings in absence of incriminating material – ITAT Conclusion: Interest paid on late payment of TDS was not an expenditure wholly and exclusively incurred for the purpose of business and further it was a payment, which was in the form of tax, so it was not an allowable expenditure. However, in case of unabated year, in search proceedings, no addition could be made in the hands of the assessee in absence ...