Tribunal affirms depreciation, reverses TDS disallowance, remands for fresh examination.

The tribunal affirmed the CIT(A)'s decision to allow depreciation, delete the disallowance of employees' provident fund payment, and reject the disallowance of donations. However, the tribunal reversed the deletion of TDS on interest disallowance and remanded the issue for fresh examination by the Assessing Officer in light of statutory provisions. The tribunal's decisions were based on the appellant's substantiated claims and interpretations of relevant laws, resulting in a partial allowance of the Revenue's appeal for statistical purposes.

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Issues:
- Disallowance of depreciation
- Disallowance of employee's provident fund payment
- Disallowance of TDS on interest
- Disallowance of donations

Disallowance of Depreciation:
The Revenue appealed against the CIT(A)'s order deleting the disallowance of depreciation without giving the assessing officer an opportunity to examine additional evidence. The CIT(A) justified the deletion based on the appellant's substantiated claim. The tribunal found no violation of Rule 46A and upheld the CIT(A)'s decision, noting that the appellant's evidence supporting the depreciation claim was unchallenged. Hence, the tribunal affirmed the CIT(A)'s findings on this issue.

Disallowance of Employee's Provident Fund Payment:
The Revenue contended that the CIT(A) wrongly deleted the disallowance of employees' provident fund payment, arguing that the deposit should have been made before the due date prescribed by the statute. However, the tribunal disagreed, citing the Finance Bill's clarification that the issue falls under Section 36(1)(va) and not Section 43B, with prospective application from 01-04-2021. Consequently, the tribunal upheld the CIT(A)'s decision to delete the disallowance.

Disallowance of TDS on Interest:
The Revenue challenged the CIT(A)'s deletion of the disallowance of TDS on interest, citing non-deduction of TDS by the assessee. The tribunal referred to relevant case law and statutory provisions to conclude that the disallowance applies to both paid and payable expenses. Additionally, the tribunal noted the retrospective effect of the second proviso to Section 40(a)(ia) inserted in the Finance Act, 2012. Consequently, the tribunal reversed the CIT(A)'s decision and remanded the issue to the Assessing Officer for fresh examination in light of the statutory provisions.

Disallowance of Donations:
The Revenue sought to revive the disallowance of donations, alleging a violation of Rule 46A(3) due to the admission of additional evidence. However, the tribunal found no evidence of such admission and rejected this ground, consistent with its decisions on previous substantive issues. As a result, the tribunal treated the Revenue's appeal as partly allowed for statistical purposes.

This detailed analysis of the judgment covers the various issues raised by the Revenue and the tribunal's reasoning behind upholding or reversing the CIT(A)'s decisions on each issue.

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