https://www.taxtmi.com/caselaws?id=296029 The ITAT upheld the disallowance of interest on late payment of TDS under section 201(1A), emphasizing that such interest is a penalty for failure to pay tax on time rather than a deductible business expense. Despite the assessee's argument that TDS is not levied on business profits, the ITAT aligned with the Madras High Court decision, highlighting the penalty nature of the interest payment and dismissing the appeal. This case underscores the significance of judicial precedents in tax matters and the distinction between penalties and allowable business expenses in determining tax liabilities. en-us Mon, 01 Jun 2020 00:00:00 +0530 Thu, 01 Jul 2021 07:54:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=296029 The ITAT upheld the disallowance of interest on late payment of TDS under section 201(1A), emphasizing that such interest is a penalty for failure to pay tax on time rather than a deductible business expense. Despite the assessee's argument that TDS is not levied on business profits, the ITAT aligned with the Madras High Court decision, highlighting the penalty nature of the interest payment and dismissing the appeal. This case underscores the significance of judicial precedents in tax matters and the distinction between penalties and allowable business expenses in determining tax liabilities. Case-Laws Income Tax Mon, 01 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=296029