2018 (4) TMI 565

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....ound no. 3 is dismissed as not pressed. 3. Ground no. 1 is relating to confirmation of disallowance of Rs. 4,45,975/- made on account of foreign travel expenditure. 4. The AO found that the assessee claimed Rs. 4,45,975/- foreign travel expenses as deduction on account of promoters visit to South Africa. For non submission of any evidence in respect of business exigency, the AO disallowed an amount of Rs. 4,45,975/- and added the same to the total income of assessee. 5. The CIT-A confirmed the above addition made by the AO by observing that the assessee failed to furnish any details before AO as well as before him in the first appellate stage and confirmed the impugned addition made by the AO on this count. 6. Heard both the parties and....

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....e supporting evidences regarding urgency of foreign trip and its connection with business. However, assessee has failed to furnish any such details. Under the circumstances, it is held that expenses on foreign trip, as above, was not for business purposes and addition of Rs. 4,45,975/- is confirmed. " 7. In view of above, we are of the view that the CIT-A was correct in confirming the impugned disallowance of Rs. 4,45,975/- made by the AO and it is justified. We uphold the same. Therefore, ground no. 1 raised by the assessee is dismissed. 8. Ground no. 2 is relating to confirmation of disallowance of Rs. 1230/- made by the AO on account of interest paid on late deposit of TDS. 9. On perusal of P & L account, the AO found that the assess....

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.... of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 (SC), which held interest paid on late deposit of sales tax is an allowable deduction U/Sec. 37(1) of the Act. Relevant portion of order dt. 30- 08-2017 is reproduced herein below for better understanding:- The issue of delay in the payment of service tax is directly covered by the judgment of Hon'ble Apex Court in the case of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 in favour of assessee. The relevant extract of the judgment is reproduced below : "The High Court has proceeded on the basis that the interest on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court ha....

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.... represent the tax of the assessee but it is the tax of the party which has been paid by the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon'ble Apex Court in the case of Bharat Commerce Industries Ltd. Vs. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand. Thus, in our considered view, the principle laid down by the Hon'ble Supreme Court in the case of Bharat Commerce Industries Ltd. (supra) is not applicable in the instant facts of the case. Thus, we hold that the Assessing Officer in the instant case has wrongly applied the principle laid down by the Hon'ble Supreme Court in the case of ....