Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 1376 - ITAT DELHIDisallowance of interest on TDS payments - allowable as deduction u/s 37(1) - HELD THAT:- Co-ordinate Bench of ITAT Bangalore in the case of Jindal Aluminimum Limited [2021 (8) TMI 1181 - ITAT BANGALORE] having similar facts where interest on TDS is held as ineligible business expenditure. Hence, we have no hesitation to hold that interest payment on late payment of TDS is not eligible business expenditure for deduction and it is not compensatory in nature. Payment of interest on late deposit of TDS levied u/s 201(1A) is neither an expenditure only and exclusively incurred for the purpose of the business and therefore the same is not allowable as deduction u/s 37(1) of the Act. Disallowance made by the AO is hereby confirmed. The ground of appeal is dismissed. Travelling & Conveyance expenses and depreciation on vehicles & insurance expenses - The expenses claimed consist of small/petty cash amounts and self made vouchers are not fully verifiable and the personal element of expenses by use of vehicles by directors and staff members cannot be ruled out - HELD THAT:- AO has made adhoc disallowance of Rs.1,00,000/- by stating that vouchers of expenses are not fully verifiable and the personal elements of expenses by use of vehicles by Directors and staff members cannot be ruled out. In the appellate proceedings the assessee has not produced any evidences to rebut the finding of the AO. The expenses are incurred in cash which are not fully verifiable and probability of personal nature in these expenses cannot be ruled out. A.O. has made a reasonable disallowance by the appellant. Disallowance made by the AO is hereby confirmed. Hence, the ground of appeal is dismissed.
|