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TMI Blog2024 (1) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-19. The assessee has assailed the impugned order on the following grounds of appeal: "1. The CIT (Appeal)-NFAC has erred in both facts and in law in confirming the order passed by the National E Assessment Centre, Delhi u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act, without considering the fact that while making the disallowance no opportunity of being heard is provided to the appellant for making submission against the proposed disallowance as per the directions issued by the CBDT for faceless assessment in notification No.61/2019 dated 12.01.2019. 2. That CIT(Appeals)-NFAC has erred in both fact and in law in confirming the disallowance of expenditure made by the National E-Assessment Centre of amounting to Rs. 18,97,193/- which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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) of the Act. However, the A.O did not find favour with the claim of the assessee as regards the allowability of the interest paid on late deposit of TDS as an expenditure u/s. 37(1) of the Act. The A.O after relying on a host of judicial pronouncements concluded that the assessee's claim for deduction of interest on delayed deposit of the TDS was not allowable as a business expenditure either u/s. 36(1)(iii) or u/s. 37(1) of the Act. For the sake of clarity the crux of the observation of the A.O is culled out as under: "19. Conclusion: From the above judicial rulings on the issue of whether interest paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n delayed deposit of TDS determined its income at Rs. 18,97193/-. 6. Aggrieved the assessee carried the matter in appeal before the CIT(Appeals) but without success. The CIT(Appeals) finding no infirmity in the view taken by the A.O upheld the disallowance of assessee's claim for deduction of interest on delayed deposit of TDS of Rs. 18,97,193/- 7. The assessee being aggrieved with the order of the CIT(Appeals) has carried the matter in appeal. 8. I have heard the Ld. Authorized Representatives of both the parties, perused the orders of the lower authorities and material available on record, as well as considered the judicial pronouncements that have been pressed into service by the Ld. AR to drive home his contentions. 9. Shri Abhishek ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der consideration, the Ld. AR submitted that the fact that the assessee had not claimed as deduction the amount of interest of delayed deposit of TDS of Rs. 18,97,193/- (supra) could safely be gathered therefrom, Page 51 of APB. Accordingly, the AR submitted that now when the assessee had not claimed the amount of delayed deposit of TDS as an expenditure in its profit and loss account, the A.O, thus, had grossly erred by proceeding with on absolutely incorrect basis, and disallowing the said amount while computing its income for the year under consideration. 10. Per contra, the Ld. Departmental Representative (for short 'DR') relied on the orders of the lower authorities. However, the Ld. DR on being confronted with the claim of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have been received on account of "Interest on delayed payment of TDS", therefore, the Ld. AR as directed had in order to dispel all doubts furnished the bifurcated details of the same, which reads as under: 12. Also, the factum of reimbursement of the aforesaid expenses/ charges by M/s. Barbarik Projects Ltd. to the assessee-JV had been substantiated by the assessee by placing on record the copies of the respective ledger accounts, i.e., Interest & Penalty on TDS A/c., Interest on Mobilization advance A/c., Audit fees a/c. and bank charges a/c. As the "other deductions" by the Government authorities of Rs. 84/- was not reimbursed by M/s. Barbarik Projects Ltd. (supra) to the assessee-JV, thus, the said amount was claimed by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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