TaxTMI 
TaxTMI 
2023 (3) TMI 1389
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....ces of the case, the Ld. CIT(A) has erred in law and in facts in not condoning the delay in filing appeal. 6. On the facts and circumstances of the case, the Ld. CIT(A) ought to have allowed the deduction of interest paid on late payment of service tax amounting to Rs.3,27,026/-." 3. Since the assessee has not pressed the other grounds namely ground no. 1, 2, 4, 5, 7, 8, 9 & 10, they stands dismissed. 4. Ground no. 3 is against the action of the Ld. CIT(A) in not condoning the delay in filling of appeal. It is noted that the AO had passed the assessment order for AY. 2017-18 by order dated 10.12.2019. And thereafter, the assessee received the same, after few days and had instructed the Ld. AR to file an appeal before the Ld. CIT(A)/NFAC....
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....the fact that assessee had filed the appeal on 28.08.2021, in the light of the aforesaid facts, when the period of Pandemic is excluded, the delay is around ninety days (90) days which was due to the mis-placement of file/miscommunication between the assessee and the Ld. AR of the assessee. Therefore, the assessee cannot be penalized for the omission caused in not filing of the appeal before the Ld. CIT(A). So the same is condoned. So this ground of assessee is allowed. 5. Coming to the ground no. 6 which is against the disallowance of interest paid on late payment of service tax amounting to Rs.3,27,026/. 6. Brief facts is that the AO noted that the assessee has filed returned of income on 31.10.2017 declaring total income of Rs.21,21,75....
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....payment of provident fund of Rs.15,934/- and interest on VAT of Rs.27,127/-. The assessee explained that this interest is compensatory in nature and therefore the same is allowable as expenditure. The learned Assessing Officer held that such payment is penal in nature and therefore disallowable. The learned CIT (A) confirmed the disallowance by affirming the reasons given by the learned Assessing Officer. 09. We have carefully considered the rival conditions. We find that identical issue has been decided by the co-ordinate Bench in case of Emdee Digitronics Pvt. Ltd Vs. PCIT in ITA No. 361/Kol/2019 dated 28th June, 2019, wherein the co-ordinate Bench in Para No.12 relying on the decision of M/s Naaraayani Sons Pvt. Limited, in ITA No. 179....