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TMI Blog2023 (10) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... e same. Therefore, we hold the interest paid on delayed payment of TDS to Central Government account is not eligible for allowance as business expenditure , consequently, the deduction claimed by the assessee is liable to be denied - No infirmity in the order of CIT(A) in holding the same. Thus, the order of CIT(A) is justified and ground No. 1 raised by the assessee is dismissed. Penalty imposed by the RBI - non adherence to certain directives issued by the RBI - CIT(A) remanded the issue to the file of AO to consider and allow the penal interest if the payment relates to first default, if not but deny the claim of the impugned order - HELD THAT:- CIT(A) has no jurisdiction to remand the issue to the file of AO as provided under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Prathamik Shikshan Sahara Bank Ltd.[ 2017 (5) TMI 1695 - ITAT PUNE] held that the assessee is entitled to claim same as business expenditure. - SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER For the Appellant : S/Shri Ravi Sawana Dinesh Kukreja For the Respondent : Shri Ajay Kumar Kesari ORDER PER S.S. VISWANETHRA RAVI, JM : These three appeals by the assessee and Revenue against the common order dated 02-03-2023 passed by the National Faceless Appeal Centre ( NFAC ), Delhi for assessment years 2017-18 and 2018-19. 2. Since, the issues raised in these three appeals are similar basing on the same identical facts, we proceed to hear these three appeals together and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness expenditure and also cannot be regarded as compensatory payment. The ld. AR did not dispute the same. Therefore, we hold the interest paid on delayed payment of TDS to Central Government account is not eligible for allowance as business expenditure, consequently, the deduction claimed by the assessee is liable to be denied. Thus, we find no infirmity in the order of CIT(A) in holding the same. Thus, the order of CIT(A) is justified and ground No. 1 raised by the assessee is dismissed. 6. Ground No. 2 raised by the assessee challenging the action of CIT(A) in confirming the order of AO in making addition of Rs. 1,00,00,000/- on account of penalty imposed by the RBI in the facts and circumstances of the case. 7. We note that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proper to remand the issue to the file of CIT(A) for its fresh adjudication for deciding the issue, in accordance with requirement as provided under the provisions of section 251 of the Act. Thus, ground No. 2 raised by the assessee is allowed for statistical purpose. 8. In the result, the appeal of assessee is partly allowed for statistical purpose. Now, we shall take the appeal of Revenue in ITA No. 509/PUN/2023 for A.Y. 2017-18. 9. Ground Nos. A and B raised by the Revenue challenging the action of CIT(A) in holding the Employees Stock Expenses (ESOP) is an allowable expense u/s. 37(1) of the Act. 10. We note that the AO discussed the issue in para No. 7 of the assessment order dated 31-12-2019. We note that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , ITAT in the case of Biocon Ltd. and the decision of Hon ble High Court of Madras in the case of SSI Capital Ltd. (supra). Therefore, we find no infirmity in the order of CIT(A) and it is justified. Thus, ground Nos. A and B raised by the Revenue are dismissed. 11. Ground Nos. C and D raised by the Revenue challenging the action of CIT(A) in holding the broken period interest paid on Held to Maturity (HTM) as an allowable deduction in the facts and circumstances of the case. 12. We note that the AO discussed the issue in para No. 8 of the assessment order. On perusal of the same, the AO opined that the interest levied between the time gap of actual disbursal of the first installment of the loan and the time of the commencement of EMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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