Criteria for interest on delayed deposits on tax deducted at source

Last updated: 02 July 2021

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This case concerns an appeal by Iris Associates Pvt. Ltd. regarding the disallowance of Rs. 1,78,707/- claimed as a deduction for interest paid on delayed Tax Deducted at Source (TDS) deposits. The Assessing Officer added this amount back to the company's income, a decision upheld by the CIT(A). The assessee's argument was that the interest was compensatory, not penal, and therefore deductible under the Income Tax Act. The appeal to the Tribunal hinges on whether such interest expenditure is an allowable deduction.

Court :
ITAT Delhi

Brief :
This appeal is preferred by the assessee against order dated 12.09.2017 passed by the Learned Commissioner of Income Tax (Appeals)-35, New Delhi {CIT(A)} for Assessment Year: 2014-15.

Citation :
I.T.A No.7548/Del/2017

Daily Limit Reached