The Tax Publishers2019 TaxPub(DT) 5553 (Kol-Trib)

INCOME TAX ACT, 1961

Section 263 Section 37(1)

It was abundantly clear that interest on late deposit of VAT, service tax, TDS were allowable expenditure under section 37(1). AO having taken a possible view, order passed by AO was neither erroneous nor prejudicial to the interest of revenue.

Revision under section 263 - Erroneous and prejudicial order - AO having taken possible view as regards allowability of interest on late deposit of VAT, service tax, TDS -

CIT held assessment order to be erroneous and preudicial to the interest of revenue on account of AO having allowed interest on late deposit of VAT, service tax, TDS as deductible expenditure under section 37(1).Held: It was abundantly clear that interest on late deposit of VAT, service tax, TDS were allowable expenditure under section 37(1). AO having taken a possible view, order passed by AO was neither erroneous nor prejudicial to the interest of revenue.

Relied: Naaraayani Sons (P.) Ltd. [ITA. Nos. 1796 to 1798/Kol/2017, dt. 21-8-2018] : 2018 TaxPub(DT) 5756 (Kol-Trib). Supported by:Malabar Industries Ltd. v. CIT (2000) 243 ITR 83 (SC) : 2000 TaxPub(DT) 1227 (SC) and Gee Vee Enterprises (1975) 99 ITR 375 (Del) : 1975 TaxPub(DT) 267 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15



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