TaxTMI 
TaxTMI 
2015 (8) TMI 11
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....urse of assessment proceedings noticed that the assessee had claimed Generator hire charges of Rs. 1,80,000/- and vehicle hire charges of Rs. 90,000/- in the P & L Account but had not deducted TDS on the said payments as per the provisions of Section 194 (I) of the Income Tax Act, 1961 (hereinafter referred to as the Act). He therefore made the disallowance of Rs. 2,16,000/- by invoking the provisions of Section 40(a) (ia) of the Act. 3. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and submitted as under :- "The provisions of Section 40 (a) (ia) of the Act has two limbs, one is where, inter alia, assessee has to deduct tax and second where after deducting tax, inter alia, the assessee has to pay into Government Ac....
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....ts the provision of Section 40(a) (ia) and hence the expense is not allowable. Against the same ground of appeal by the appellant in the earlier year (2009-10) relying on the decision laid down in the case as cited by appellant, my Ld. predecessor has decided that "if there is any shortfall the assessee can be declared to be an assessee in default u/s 201 of the Act and no disallowance can be made by invoking the provisions of Section 40(a) (ia) of the Act." I agree with the decision of my Ld. predecessor and hence the addition of Rs. 2,16,000/- is deleted. This ground of appeal is allowed." 5. Now, the department is in appeal, the Ld. DR supported the order of the AO and reiterated the observations made in the assessment order dated 14.....
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....etion of disallowance is challenged before us on the ground that TDS is not made at the correct rate as per the S. 194J. This issue is no more res integra. This Bench of the Tribunal in its order in ITA no. 2429/Del/2011 for AY 2008-09 in the case of M/s Solutions Inforsystems Pvt. Ltd. vide order dt. 12.12.2013, at para 9 has held as "9. In ground no. 2 the issue is whether deduction u/s 40 (a) (ia) can be made when tax has been deducted at source u/s 194C instead of 194J. This Bench of the Tribunal in the case of Hero MotorCorp followed the decision of Hon'ble Calcutta High Court and eld as follows. The Hon'ble Calcutta High Court in the case of CIT vs. S.K.Tekriwal (ITA no. 183 of 2012 has held as follows : "We are of the view that....
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.... Chandabhoy & Jossobhoy (ITA no. 20/Mum/2010 (Mum.) UE Trade Corporation (India) Ltd. v. DCIT 28 Taxmann.com 77 (Del.) and other cases. As this is not a case of non-deduction of tax but a case where tax has been deducted at a lower rate that too under the bona fide belief that deduction was properly made, we accept the contention of the assessee. Respectfully following the judgment of the Hon'ble Calcutta High Court in the case of S.K. Tekrisal (supra) this ground is allowed deleting the disallowance made u/s 40(a) (ia). 9.1. Respectfully following we allow ground no. 2." 6.1. Respectfully following the same we uphold the order of the First appellate Authority and dismiss this ground of the Revenue." 7. Since the facts of the....
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....power failure as well as unables the system to function at high speed and accuracy. Had it not been for computers, UPS would have never been purchased. Their use is confined to a computer system. Such installation therefore remains a part of computer only. Further, UPS are connected to LAN, PCS, Servers etc. hence they form an integral part of the computer system. Considering that they are connected to the computer system and are not used for any other purpose and the further fact that the computers could not have functioned properly without support from UPS, they are considered as integral part of computer. As in a laptop a battery form its integral part, the same is the position with UPS. The difference being that one is internally fitted....
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....anners, server etc. The Court went by the reasoning that computer accessories and peripherals cannot be used without the computer hence these would form part of computer only. Likewise UPS use is confined to a computer system hence such installation too therefore remain a part of computer only as held by Delhi High Court. d. The Delhi Bench in ACIT, New Delhi vs. HCL Comnet Ltd., ITA Nos. 322 and 2583, ITA No. 2239 wherein it has been observed that this issue has been discussed and decided in a number of case by the jurisdictional ITAT as well as Delhi High Court, where it has been held that the computer accessories and peripherals, printers and scanner, UPS etc. are entitled to higher rate depreciation @ 60% on the ground that such a....