https://www.taxtmi.com/caselaws?id=447708 ITAT Bangalore ruled that interest paid on late payment of TDS is not an allowable deduction under section 37(1) as it cannot be regarded as an expense incurred wholly or exclusively for business purposes. The Tribunal held that interest under section 201(1A) is equivalent to interest under section 234 on delayed income tax payment, thus not deductible. Regarding TDS credit, the matter was remanded to AO for fresh consideration after proper reconciliation. The Tribunal upheld addition of income admitted during survey proceedings where capital expenditure was wrongly treated as revenue expenditure, rejecting the assessee's challenge to their own acknowledged mistake. en-us Thu, 09 Nov 2023 00:00:00 +0530 Tue, 02 Jan 2024 18:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447708 ITAT Bangalore ruled that interest paid on late payment of TDS is not an allowable deduction under section 37(1) as it cannot be regarded as an expense incurred wholly or exclusively for business purposes. The Tribunal held that interest under section 201(1A) is equivalent to interest under section 234 on delayed income tax payment, thus not deductible. Regarding TDS credit, the matter was remanded to AO for fresh consideration after proper reconciliation. The Tribunal upheld addition of income admitted during survey proceedings where capital expenditure was wrongly treated as revenue expenditure, rejecting the assessee's challenge to their own acknowledged mistake. Case-Laws Income Tax Thu, 09 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447708