PURE SPIRITSS LIMITED,PATNA vs. ACIT, DC/AC CIRCLE 2, PAT, PATNA

ITA 314/PAT/2026Status: DisposedITAT Patna13 July 2026AY 2017-1823 pages
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What did the Tribunal hold?

The Tribunal directed the AO to verify if there was any exempt income and, if not, to delete the disallowance under Section 14A. The disallowance of interest on delayed statutory dues was confirmed as penal in nature.

What were the facts?

The assessee appealed against the CIT(A)'s order which upheld the disallowance of interest on delayed statutory dues and partly allowed disallowance under Section 14A. The Assessing Officer had made additions for violation of TDS provisions, interest on delayed statutory dues, and disallowance under Section 14A.

What were the issues?

Whether interest on delayed payment of statutory dues is a penal expenditure and not allowable as business expenditure. Whether disallowance under Section 14A should be made when there is no exempt income.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 14A,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA ‘DB’ BENCH AT KOLKATA

Before: SHRI PRADIP KUMAR CHOUBEY & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Addl/JCIT(A)- Jodhpur [hereinafter referred to as Ld. ‘Addl/JCIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2017-18 dated 10.03.2026. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:

"

1.

The Ld. CIT(A) NFAC erred in law and on the facts of the case to affirm the order of the assessing officer on the disallowance made us 37(1) of the Act for Rs. 43,06,189. The Ld. CIT(A) NFAC erred in adjudicating and affirming with AO that interest on late payments

The order continues below.

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