Interest on delayed payment of tds is allowable or not??

This query is : Resolved

mandar rane (Querist)
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17 August 2012 Dear Friends,

I have one query regarding Interest on delayed payment of TDS. Whether interest paid on such delayed payment of TDS u/s 201 of Income Tax Act is allowable business expenditure or not.

Please give me relevant case laws/ High Court judgements (latest) if any.

Regards,

Mandar

Amol S Joglekar

Amol S Joglekar (Expert)
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17 August 2012 interest per se are not pecuniary in nature and hence can be allowed subject to however sec 43B. Penalty in whatever form can not be allowed.