TaxTMI 
TaxTMI 
2025 (2) TMI 1552
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....A.Y. 2018-19. 2. At the outset, it is seen that there was delay of 213 days in filing of the appeal before us. The assessee has filed condonation petition along with Affidavit explaining the reasons for delay (page nos.1 to 52 of the paper book). The Learned Authorised Representative ("Ld. AR") submitted that, during the relevant period, the assessee faced continuous litigation with the flat owners regarding the issue of maintenance charges and situation of club house. On account of such litigation, the assessee had to make various compliances before the Hyderabad Metropolitan Development Authority ("HMDA"), Telangana Real Estate Regulation Authority ("TSRERA") and civil court. On account of these litigations, the filing of appeal before....
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....- on account of interest paid on KK Cess on service tax and Rs. 18,313/- on account of interest paid on payment of SG Cess on service tax. Further, the Ld. AR submitted that, they are not pressing the ground related to the addition of Rs. 66,710/- on account of interest on late payment of TDS. Regarding other additions, the Ld. AR relied on the decision of co-ordinate bench of ITAT in the case of Analogics Tech India Limited Vs. DCIT in ITA No.247/Hyd/2023 dated 08.09.2023, wherein it was held that interest payment on indirect tax liability are compensatory in nature and does not amount to penalty. Finally, the Ld. AR submitted that such interest payments should be allowed as business expenditure u/s.37(1) of the Income Tax Act, 1961 ("the ....
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.... it has been held as under : "21. We have heard the rival submissions and perused the material on record. Section 50 of the GST Act provides that the assessee is liable to pay the interest which shall not be exceeding 18% on the unpaid tax / delayed payment of GST with the Government. Now the question arises is whether the payment of 18% tax on the delayed / unpaid tax is said to be compensatory or penal in nature. This issue on the face of it is covered in favour of the assessee by the decision of the coordinate Benches relied upon by the assessee. In fact, in the recent decision of the jurisdictional High Court in the case of Megha Engineering & Infrastructures Ltd. [2019] 104 taxmann.com 393 (Telangana), the Hon'ble High Court h....
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....the Council." 29. It is seen from Sub-section (1) of Section 50 that the liability to pay interest arises automatically, when a person who is liable to pay tax, fails to pay the tax to the Government within the period prescribed. The liability to pay interest is in respect of the period for which the tax remains unpaid. In fact, the liability to pay interest under Section 50(1) arises even without any assessment, as the person is required to pay such interest "on his own". 30. While Sub-Section (1) of Section 50 speaks about the liability to pay interest under one contingency, viz., the failure to pay tax within the period prescribed, Sub-Section (3) of Section50 speaks about the liability to pay interest under a different....