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2024 (1) TMI 1027 - ITAT RAIPURInterest on delayed deposit of TDS - addition u/s. 37(1) - claim of the assessee that as interest paid on late payment of TDS was charged due to delay in deposit/payment of the same, thus, the same being compensatory in nature was allowable as an expenditure u/s. 37(1) - HELD THAT:- Though the assessee had brought the aforesaid factual position to the notice of both the lower authorities but they had failed to take cognizance of the same and had primarily focused more on the issue as to whether or not the interest on delayed deposit of TDS u/s. 201(1A) was allowable as an expenditure u/s. 36(1)(iii) or u/s. 37(1) of the Act. Both the lower authorities had failed to address the claim of the assessee that the aforementioned was never claimed as an expenditure but was in the nature of a back-to-back reimbursement from its member, viz. M/s. Barbarik Project Ltd. As view that as stated by the AR, and rightly so, now when the assessee JV had not claimed the amount as an expenditure in its profit and loss account, the A.O, thus, was not justified in disallowing the same on the premise that it was not allowable as a deduction per the mandate of law. Thus, in terms of aforesaid observation, not being able to concur with the view taken by the lower authorities, set-aside the order of the CIT(A) and vacate the addition/disallowance made by the A.O. Thus, the Ground of appeal No. 2 is allowed in terms of my aforesaid observations.
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