https://www.taxtmi.com/caselaws?id=771426 Interest paid on delayed remittance of employees' provident fund contributions is not deductible as business expenditure under section 37(1). Employees' contributions are treated as the employer's income and must be deposited by the prescribed due date under the statutory scheme governing such contributions. Where the principal contribution is disallowed for late payment, interest attributable to that delayed remittance takes the same character. Section 37(1), as a residuary deduction provision, cannot permit deduction of expenditure prohibited under the specific provisions governing employees' contributions. The disallowance of interest on delayed deposit is therefore sustained. en-us Wed, 23 Apr 2025 00:00:00 +0530 Fri, 23 May 2025 17:29:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771426 Interest paid on delayed remittance of employees' provident fund contributions is not deductible as business expenditure under section 37(1). Employees' contributions are treated as the employer's income and must be deposited by the prescribed due date under the statutory scheme governing such contributions. Where the principal contribution is disallowed for late payment, interest attributable to that delayed remittance takes the same character. Section 37(1), as a residuary deduction provision, cannot permit deduction of expenditure prohibited under the specific provisions governing employees' contributions. The disallowance of interest on delayed deposit is therefore sustained. Case-Laws Income Tax Wed, 23 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771426