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2020 (2) TMI 22 - AT - Income TaxDisallowing the interest on late payment of TDS- HELD THAT:- As decided in own case [2020 (1) TMI 1094 - ITAT JAIPUR] we sustain the addition on account of late payment of TDS. Interest paid by the assessee on account of late payments of Sales Tax, Excise & Service Tax and EPF - we rely upon the decision of CIT vs Western India State Motors [1988 (3) TMI 22 - RAJASTHAN HIGH COURT] wherein it has been said that interest payment of delayed payment of statutory liabilities is allowable as business expenditure. Therefore, the amount of interest paid in respect of late deposit of statutory/Govt. liabilities also partake the character of an expenses which is allowable as expenditure u/s 37(1). We are also fortified by the decision of Hon'ble Supreme Court in the case of Lachmandas Mathura vs CIT [1997 (12) TMI 16 - SUPREME COURT] wherein it was held that when any statutory dues are paid delayed and interest is paid for delayed payment then it is compensatory in nature and allowable expenditure for business u/s 37 - no doubt that delay in making payment of statutory liabilities or interest expenses on delayed payment are compensatory in nature and this is allowable expenditure in business u/s 37. Therefore, we direct the AO to allow the claim of payment of interest made by the assessee on account of late payment of Sales Tax, on account of late payment of Excise and Service Tax and on account of late payment of EPF. Addition on account of claim of loss by theft - HELD THAT:- As per facts of the present case, since the assessee was hopeful of getting the recovery of amount but it was only when the assessee during the year under consideration had come to conclusion that recovery is impossible or chance of recovery became remote, therefore, the assessee had rightly made his claim during the year under consideration. Therefore, in view of the decision of CIT vs Durga Jewellers 1987 (11) TMI 35 - MADHYA PRADESH HIGH COURT] we allow the claim of the assessee and direct the AO to delete the addition made on account of claim of loss of theft.
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