Dismissing the appeal of the revenue , the Tribunal held that ; Interest for delay in making payment of Service tax and Tax deducted at source being compensatory in nature and not in the nature of penalty hence allowable deduction. ( AY. 2010-11)
DCIT v. Narayani Ispat Pvt. Ltd. (2018) 61 ITR 371 (Kol) (Trib)
S. 37(1) : Business expenditure – Interest for delay in making payment of Service tax and Tax deducted at source being compensatory in nature and not penalty in nature was held to be allowable deduction.