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2019 (7) TMI 86 - AT - Income TaxRevision u/s 263 - Interest amount debited in the Profit and Loss Account under the garb of belated payment of VAT, Service Tax and TDS are penal in nature and as such should not be allowable under section 37(1) - assessment U/s 143(3) by AO - HELD THAT:- As decided in M/s Naaraayani Sons Pvt. Limited [2018 (8) TMI 1362 - ITAT KOLKATA] held that interest expense on late deposit of VAT, service tax, TDS etc are allowable expenditure under section 37(1). Interest on late deposit of VAT, service tax, TDS etc are allowable expenditure under section 37(1) of the Act and the assessing officer has taken a possible view therefore order passed by the assessing officer u/s 143(3) dated 11.05.2016, is neither erroneous nor prejudicial to the interest of Revenue and cannot be held to be unsustainable in law. Therefore, we quash the order passed by the ld Pr.CIT U/s 263 of the Act. - Decided in favour of assessee.
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