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2021 (7) TMI 686 - AT - Income TaxDisallowance of expenses on account of interest on late payment of service tax - CIT(A) deleted the disallowance holding that the interest on late payment of service tax is compensatory in nature - HELD THAT:- CIT(A) deleted the disallowance holding that the interest on late payment of service tax is compensatory in nature. While doing so, he relied on the decision of the coordinate Bench of the Tribunal in the case of Messee Dusseldorf India (P) Ltd. [2009 (12) TMI 1034 - ITAT, DELHI]. We do not find any infirmity in the order of the CIT(A) on this issue. We find, the coordinate Benches of the Tribunal are consistently holding that interest paid for late deposit of the service tax is a permissible deduction. Also see DEEPALI DESIGN & EXHIBITS (P) LTD. [2019 (4) TMI 1017 - ITAT DELHI] wherein as held service tax is permissible deduction the interest paid for late deposit of the same is also a permissible deduction and should be allowed in the same manner. - Decided against revenue Delayed employees’ contribution towards Provident Fund - addition u/s 2(24)(x) and section 36(1)(va) - CIT-A deleted the addition - HELD THAT:- Delayed payments of employee’s contribution to Provident Fund/ESIC is allowable if it is deposited before the return is filed u/s 139(1). In view of the legal position on the issue and the order of the Hon'ble ITAT, Delhi in the appellant’s own case [2017 (1) TMI 1598 - ITAT DELHI] the company is eligible for deduction made by the AO by invoking provisions of Section 36(1)(va) read with 2(24)(x) and 43B of the Act. The AO is, therefore, directed to delete the addition. Also see HC own case [2017 (9) TMI 1688 - DELHI HIGH COURT] - Decided in favour of assessee.
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