2017 (5) TMI 1675

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..... SINGH, JM This appeal by the assessee is arising out of the orders of CIT(A)-56, Mumbai, in appeal No. CIT(A)-56/ADIT(IT)-1(2)/2014-15/262-D dated 28-03-2016. The Assessment was framed by ADIT (IT)-1(2), Mumbai for the A.Y. 2010-11 vide order dated 30-04-2014 u/s 144C (3) read with section of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only issue in this appeal of assessee is agains .....

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..... s. 73,923/- being interest on delayed payment of TDS and he require the assessee as to explained as to why the same should not be disallowed. The assessee claimed that the TDS relates to payment to various traders and the same is in connection and for the purpose of business. The AO noted that this amount is incurred on delayed payment of TDS and TDS being tax on income and same cannot be allowed .....

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..... ng the business of the appellant. In view of the same, the appellant is not allowed to take the benefit of interest paid on delayed payment of TDS as an eligible expense." 4. We find that the facts are undisputed that the assessee has claimed interest as expense incurred for delayed payment of TDS. We find that this interest is paid for default in respect to statutory liabilities and this interes .....

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