TaxTMI 
TaxTMI 
2016 (2) TMI 743
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..../s Jayabharat Credit Ltd (Rs. 13,93,631/-) in respect of vehicles obtained from them under hire purchase scheme. The said payments were not subjected to deduction of tax at source. According to Learned AO, the said payments are in the nature of interest and hence provisions of section 194A read with section 40(a)(ia) of the Act are applicable and accordingly disallowed the said expenditure. On first appeal, the assessee pleaded before the Learned CIT(A) that the hire purchase instalment paid by50 the assessee had no element of interest and relied upon CBDT's Circular No. 1425 dated 16.11.1981. The Learned CIT(A) appreciated the contentions of the assessee and deleted the disallowance. Aggrieved, the revenue is in appeal before us on the following ground:- 1. Ld CIT(A)-1,Kolkata has erred in deleting the addition of Rs. 15,52,111/- made u/s 40(a)(ia) on account of non deduction of tax at source u/s 194A on interest payment to financer of vehicle loan relying on the CBDT instruction no 1425 dated 16.11.1981 without appreciating the fact that it was mere a loan for purchase of vehicle and did not qualify the characteristics of hire -purchase. Further, relation of lessor and lessee i....
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....x was not deducted at source and hence there is violation of section 194C of the Act. The Learned AO proceeded to invoke section 40(a)(ia) of the Act and sought to disallow the said expenditure. On first appeal, the Learned CITA based on the details filed by the assessee found that single payment does not exceed Rs. 20,000/- and total payment to any party during the year was not more than Rs. 50,000/- and accordingly held that the provisions of section 194C of the Act are not applicable and consequently deleted the disallowance. Aggrieved, the revenue is in appeal before us on the following ground:- 2. Ld CIT(A)-1,Kolkata has erred on the facts and law in deleting the additions of 8,33,245/- ( 7,32,032/- + 1,01,213/-) made u/s 40(a)(ia) on Pr-account of non deduction of tax at source u/s 194C on payment of Lorry hire charges and trailer hire charges stating that all the payments were either below Rs. 20,000/- or total payment to one party during the financial year was below Rs. 50,000/- in spite of the fact that ledger a/c and evidences produced during the assessment stage shows that total payment of Rs. 3,96,888/- was made in violation of provision of section 194C( total of sing....
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....ct. However, the Learned AO sought to disallow the depreciation of Rs. 6,09,570/-. Before the Learned CITA, the assessee filed the provisional registration certificates in march 2007 itself and argued that the vehicles were effectively put to use by march 2007 itself. The Learned CITA held that the assessee is a transporter with annual receipt with gross operating income of Rs. 22.03 crores and keeping in view of these facts and circumstances, the assessee is entitled for depreciation u/s 32 of the Act. Aggrieved, the revenue is in appeal before us on the following grounds:- 3. Ld CIT(A)-1,Kolkata has erred in allowing the depreciation of Rs. 6,09,570/- on vehicle no NL-01-0-2921 and NL-01-d-3621 in spite of the fact that vehicles were not put to use during the financial year as evident from the fact that hire purchase agreement for purchase of vehicle was drawn on 31.03.2007 and vehicles were registered with the motor vehicle department on 11.04.07 and 12,.04.07 respectively ie after the end of the relevant financial year. 4. Ld CIT(A)-1,Kolkata has erred in admitting the additional evidences regarding temporary registration of vehicles no NL-01-D- 2921 and NL-01- d-3621 with....
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....ed AO however sought to disallow the depreciation claimed on the said vehicle. On first appeal, the Learned CIT(A) appreciated the fact that the two cranes were purchased and were repaired and were brought to working condition by obtaining the certificate of fitness. Based on this certificate of fitness and invoice copy, the Learned CIT(A) directed the Learned AO to allow depreciation u/s 32 of the Act. Aggrieved, the revenue is in appeal before us on the following grounds:- 5. Ld CIT(A)-1,Kolkata has erred in allowing the depreciation of Rs. 1,41,8941- on unserviceable crane stating that it was repaired in order to bring it to the workable conditions in spite of the facts that assessee failed to produce the supporting evidences for repairing the said crane, before AO. 6. Ld CIT(A)-1,Kolkata has erred in admitting the additional evidences regarding bills and vouchers of repairing of unserviceable crane calling for remand report under Rule 46A of the I.T. Rule. 5.2. The Learned DR vehemently supported the order of the Learned AO and argued that the fresh details were produced before the Learned CIT(A) for the first time and no remand report were called for by the Learned CIT(....