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2023 (3) TMI 1153 - AT - Income TaxDisallowance on account of interest payment on TDS deposited to the Income Tax Department - AO had proposed the impugned disallowance u/s 43B which allows deduction of statutory dues in the year of actual payment irrespective of the year in which the liability was incurred - As submitted by the assessee that the said payment of interest is evidenced by Bank Challan and the DRP directed the Ld. AO to allow the assessee’s claim provided evidence of payment is produced before the Ld. AO - HELD THAT:- Impugned disallowance for the reason assigned now is also not sustainable. Identical issue arose for consideration before Mumbai Bench of the Tribunal in M/s. M L Reality [2021 (9) TMI 877 - ITAT MUMBAI] and the Tribunal in M/S. M.L. REALTY VERSUS ACIT 22 (2) , MUMBAI [2021 (9) TMI 877 - ITAT MUMBAI] held that interest paid on late payment of TDS is compensatory in nature and is an allowable deduction under section 37(1) of the Act - Decided in favour of assessee. Disallowance paid towards arrears for contribution to provident fund - AO made the impugned disallowance for the sole reason that challans evidencing payment were not submitted - HELD THAT:- After hearing all and finding that the assessee has established that the payment was made for PF arrears and documents were brought on record, we hold that the impugned disallowance is not sustainable. It is, therefore, deleted. Appeal of the assessee is allowed.
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