TaxTMI 
TaxTMI 
2015 (8) TMI 309
X X X X Extracts X X X X
X X X X Extracts X X X X
....referred to as 'the Act') in respect of commission paid to overseas agents without deduction of tax; ii. Allowing of expenditure on overhauling of windmills as 'current repairs' u/s.37(1) of the Act; 2. The facts of the case as emanating from the records are: The assessee-company is engaged in the business of manufacturing of textile yarn. The assessee filed its return of income for the AY. 2010-11 on 27-09-2010 declaring loss of `13,48,48,975/- under normal computation and profit of Rs. 8,24,21,606/- u/s.115JB of the Act. The case of the assessee was selected for scrutiny and notice u/s. 143(2) of the Act was issued to the assessee on 05-09-2011. During the course of scrutiny assessment, the Assessing Officer disallowed the payment of R....
X X X X Extracts X X X X
X X X X Extracts X X X X
....T Vs. Farida Shoes (P) Ltd., reported as 34 Taxmann.com 28 (Chennai-Trib) and deleted the dis-allowance. On the second issue of dis-allowance of depreciation, the CIT(Appeals) accepted the submissions of the assessee to treat the one time expenditure incurred on overhauling of the wind mill generators as 'current repairs', allowable u/s.37(1) of the Act. Against the order of CIT(Appeals), the Revenue has come in appeal before the Tribunal. 3. Shri P.Radhakrishnan, appearing on behalf of the Revenue submitted that CIT(Appeals) has erred in deleting the dis-allowance made u/s.40(a)(ia) on payment of commissions made to foreign agents without deduction of tax at source. The ld.DR supported the assessment order on the issue. On the next gro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ified its claim during the course of assessment proceedings. The assessee realized its mistake of claiming depreciation on the amount spent on overhauling of generators whereas the amount should have been claimed as revenue expenditure. The assessee immediately rectified its mistake during the course of assessment proceedings. The assessee has not raised any fresh claim for which revised return of income was required to be filed. 5. Both sides heard. Records in the case perused. In appeal, the Revenue has raised two issues. The first issue relates to dis-allowance u/s.40(a)(ia) in respect of commission paid to foreign agents without deduction of tax. The First Appellate Authority accepting the contentions of the assessee has given a categ....