Interest on TDS being compensatory in nature is allowable u/s 37(1)

Manglam Arts Vs PCIT (ITAT Jaipur)

ITAT Jaipur held that interest paid on TDS is compensatory in nature and is a business expenditure allowable u/s 37(1) of the Income Tax Act

Facts- The assessee is engaged in the business of manufacturing and export of wooden handicrafts, durries, rugs, textile items, etc. AO completed assessment u/s. 143(3) after making addition towards litigation expense and employee’s contribution to provident fund.

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