2025 (11) TMI 266

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.... ORDER PER M. BALAGANESH, A. M : 1. The appeal in ITA No. 5025/Del/2024 for AY 2018-19, arises out of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as 'ld. NFAC', in short] in Appeal No. ITBA/NFAC/S/250/2024-25/1067938127(1) dated 23.08.2024 against the order of assessment passed u/s 143(3) r.w.s. 143(3A) of the Income-tax Act, 1961 (hereinafter referred to as....

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....m of Rs 17,71,380/- shown by the Assessee on account of interest paid for late payment of GST and VAT to be penal in nature and accordingly disallowed the same under section 37 of the Act. The Assessee submitted that the said interest payment would be compensatory in nature as it was incurred only for delayed remittance of statutory dues to the account of the Central Government. However, the plea ....

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....ture and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.) The learned counsel appearing for the appellant-assessee states that the said judgment of the Full Bench has been reversed by the larger Bench of the High ....