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2020 (6) TMI 758 - AT - Income TaxDisallowance on account of interest on late payment of TDS u/s 201(1A) - contention of the assessee is that the provision of section 40(a)(ii) prohibits the deduction of payment of taxes levied on profit or gain of the business and TDS is not paid on profit or gains of the business, therefore interest paid under section 201(1A) is allowable as business expenses as the same does not constitute the part of the taxes which is levied on profit or gains of business - AO disallowed the claim of the assessee by holding that the interest paid on TDS is not as allowable expenses - HELD THAT:- Interest on delayed deposit of TDS is not allowable deduction in view of the judgment of Hon’ble Madras High Court in case of CIT vs. Chennai Properties & Investment Ltd [1998 (4) TMI 89 - MADRAS HIGH COURT] As we have decided the identical issue in favour of the assessee in the case of M/s Narayani Ispat Pvt. Ltd. (supra). However, we are changing our decision in the present case for the simple reason that the judgment of Hon’ble Madras High Court in case of CIT vs. Chennai Properties & Investment Ltd [2017 (10) TMI 67 - ITAT KOLKATA] was not brought to our notice while hearing the case of M/s Narayani Ispat Pvt. Ltd. There is no ambiguity that the issue is covered against assessee by the Hon’ble Madras High Court in case of Chennai Properties & Investment Ltd. (supra). Accordingly we do not find any infirmity in the order of the learned CIT-A. Hence we decline to interfere. Thus the ground of appeal of the assessee is dismissed.
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