Allowance/disallowance - int. paid on late payment of tds

Dear All,

May I know whether Interest paid on late payment of TDS is allowed as an expense while computing business Income. There are certain case laws which say that interest paid for deferrment of TDS payment is penal in nature therefore not allowable. 

But, these case laws are not directly related to what our subject matter is. It seems that such interest is compensatory in nature therefore to be allowed for computing business income. Please do suggest.

Keval