An assessee has paid interest u/s 234B in the year 2007-08 for the short fall short payment of advance tax for the year 2006-07. Whether the interest paid is allowable as deduction in the computation of taxable income for the year 2007-08.
17 March 2009
Interest payment on account of delayed remittance of advance income tax is not an allowable expenditure while computing taxable income of the ensuing year. Citation:-Bharat Commerce & Industries Ltd 98 Taxmann 151 (SC).
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