9911796707
TMI Blog2018 (4) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... is justified. - Decided against assessee Addition on account of interest paid on late deposit of TDS - Held that:- Interest paid on delayed deposit of TDS is an allowable deduction by placing reliance on the decisions of Bharat Commerce Industries Ltd Vs. CIT reported in (1998 (3) TMI 2 - SUPREME Court). - Decided in favour of assessee. - I.T.A No. 1887/Kol/2016 - - - Dated:- 6-4-2018 - Shri M. Balaganesh, Accountant Member And Shri S. S. Viswanethra Ravi, Judicial Member For the Appellant : Shri Subash Agarwal, Advocate, ld.AR For the Respondent : Shri Arindam Bhattacharya, Addl.CIT, ld. Sr.DR ORDER Shri S.S.Viswanethra Ravi, JM This appeal by the Assessee is directed against the order of the Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us also. Relevant portion of finding of the AO CIT-A are reproduced herein below:- A.O s order: 6. Further it is found that assessee debited ₹ 4,45,975/- as foreign travel expenditure on account of promoters visit to South Africa. However, the company did not enter into any business transaction with any person in South Africa. Assessee company is the business of manufacturing biscuit and company failed to produce any business exigency of visiting South Africa. Therefore, ₹ 4,45,975/- is disallowed as not related to business and added back to total income of assessee. CIT-A s order: 3.6 AO had disallowed ₹ 4,45,975/-, which was claimed as foreign travel expenses of the promoters to South Africa. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol/2014 for the A.Y 2010-11, copy of the same is on record and referred to page-5 of said order and argued that the interest expenses paid by the assessee on delayed deposit of TDS are allowable expenditure u/s. 37(1) of the Act and the said payment is not in the nature of penalty and prayed to allow ground no. 2 raised by the assessee in the appeal. 11. On the other hand, the ld.DR relied on the orders of the AO and CIT-A on this issue. 12. Heard both the parties and perused the record including the order dt. 30-08-2017 as relied on by the assessee before us. We find that the issue in hand is covered in favour of assessee by the said order dt. 30-08-2017 of this Tribunal in the case of supra, which held that interest paid on delayed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o been considered by this Court in Civil Appeal No. 830 of 1979 titled Saraya Sugar Mills (P.) Ltd. v. CIT decided on 29-2-1996. In that view of the matter, the appeal is allowed and question Nos. 1 and 2 are answered in favour of the assessee and against the revenue. In view of the above judgment, there remains no doubt that the interest expense on the delayed payment of service tax is allowable deduction. The above principles can be applied to the interest expenses levied on account of delayed payment of TDS as it relates to the expenses claimed by the assessee which are subject to the TDS provisions. The assessee claims the specified expenses of certain amount in its profit loss account and thereafter the assessee from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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