TMI Blog2020 (6) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... t allowable deduction in view of the judgment of Hon ble Madras High Court in case of CIT vs. Chennai Properties Investment Ltd [ 1998 (4) TMI 89 - MADRAS HIGH COURT] As we have decided the identical issue in favour of the assessee in the case of M/s Narayani Ispat Pvt. Ltd. (supra). However, we are changing our decision in the present case for the simple reason that the judgment of Hon ble Madras High Court in case of CIT vs. Chennai Properties Investment Ltd [ 2017 (10) TMI 67 - ITAT KOLKATA] was not brought to our notice while hearing the case of M/s Narayani Ispat Pvt. Ltd. There is no ambiguity that the issue is covered against assessee by the Hon ble Madras High Court in case of Chennai Properties Investment Ltd. (supra). A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the taxes which is levied on profit or gains of business 4. However the AO disallowed the claim of the assessee by holding that the interest paid on TDS is not as allowable expenses in light of the decision of Hon ble Madras High Court in case of CIT vs. Chennai Properties Investment Ltd reported in 105 Taxman 346. 5. Aggrieved assessee preferred an appeal before learned CIT (A) who confirmed the order of the AO by holding as under: 3.3. I have carefully considered the facts of the case, assessment order and submission of the appellant. The AO has disallowed interest on TDS amounting to ₹ 2,34,079/- not paid in time on the around that same is not business expenditure u/s. 37(1) of the Act. The AO has relied upon decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ITA N0. 2127/Kol/2014 vide order dated 30-08- 2017 has decided the issue in favour of the assessee. 8. On the contrary the learned DR vehemently supported the order of the authorities below. 9. We have heard the rival contention of both the parties and perused the material available on record before us. At the outset we note that the interest on delayed deposit of TDS is not allowable deduction in view of the judgment of Hon ble Madras High Court in case of CIT vs. Chennai Properties Investment Ltd (supra) wherein it was held as under: The liability for deduction of tax arises by reason of the provisions of the Act. Under section 201, the consequence of failure to comply with the same renders that person liable to be deemed as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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