2017 (5) TMI 1675

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..... curred on delayed payment of TDS and TDS being tax on income and same cannot be allowed as business expenditure under section 37(1) - HELD THAT:- We find that the facts are undisputed that the assessee has claimed interest as expense incurred for delayed payment of TDS. We find that this interest is paid for default in respect to statutory liabilities and this interest cannot be treated as busines .....

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..... expenses on interest paid on delayed payment of TDS as business income. For this assessee has raised following ground No. 1: - "1. Interest paid on delayed payment of TDS of ₹ 73,923/- On the facts and in the circumstances of the case and in law, the learned AO erred in disallowing a sum of ₹ 73,923/-, being interest paid the appellant on delayed payment of TDS. The appellant pra .....

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..... ly, the same was disallowed. Aggrieved, assessee preferred the appeal before CIT(A). The CIT(A) confirmed the action of the AO by observing as under: - " Considering the submissions made by the assessee and the reasons recorded by the AO & based on the above discussions and facts of the case, I am of the opinion that the said adjustment relating to Interest on delayed payments of TDS is not dedu .....

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