ITAT Ahmedabad Allows Deduction of GST Interest & Late Fees

DCIT Vs Mahalaxmi Infracontract Ltd. (ITAT Ahmedabad)

Brief facts: The Assessing Officer made disallowance of ₹ 2,94,25,669/- on account of interest on GST and also disallowed GST late filing fee of ₹ 6,63,133/-. In appeal, Ld. CIT(Appeals) allowed the appeal of the assessee by holding that the aforesaid expenditures are not for violation of any law and are only compensatory in nature and hence the same are allowable as a deduction under section 37 of the Income Tax Act (“Act”).

Observations:

The Hon’able ITAT Observed that nothing has been

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