Cooperative society deposits, member-interest TDS exemption and credit-facility deduction claims require verification through records and supporting e...
Customs jurisdiction over EPCG condition breaches survives export-obligation discharge certificates, requiring alleged fraud and misdeclaration to be ...
Contractual tolerance requires consideration; breach recoveries, qualifying public infrastructure services and road works escape service tax liability...
Personal hearing requirements in GST adjudication were satisfied by prior opportunities and written submissions; appellate limitation received writ-pe...
The assessee claimed deduction for interest and late fees paid on account of delay in filing GST returns. The authorities disallowed the claim, invoking Explanation 1 to Section 37(1) of the Income Tax Act. The Tribunal held that the interest and late fees were compensatory in nature, levied for non-compliance with the GST Act provisions, and not for committing any prohibited offence. Hence, such expenses are allowable as business expenditure u/s 37(1). The Tribunal relied on the precedent of ITO vs. Virtue Financial Services (P) Ltd, which allowed deduction for interest on delayed statutory payments as compensatory expenses. Accordingly, the assessee's grounds were allowed, and interest and late fees on delayed GST returns were held deductible u/s 37(1).
The assessee claimed deduction for interest and late fees paid on account of delay in filing GST returns. The authorities disallowed the claim, invoking Explanation 1 to Section 37(1) of the Income Tax Act. The Tribunal held that the interest and late fees were compensatory in nature, levied for non-compliance with the GST Act provisions, and not for committing any prohibited offence. Hence, such expenses are allowable as business expenditure u/s 37(1). The Tribunal relied on the precedent of ITO vs. Virtue Financial Services (P) Ltd, which allowed deduction for interest on delayed statutory payments as compensatory expenses. Accordingly, the assessee's grounds were allowed, and interest and late fees on delayed GST returns were held deductible u/s 37(1).
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4805
Join Channel
TaxTMI 
