TaxTMI 
TaxTMI 
2020 (4) TMI 715
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....nfirming the action of AO in reopening the assessment u/s 147 of the Act. On the facts and circumstances of the case, learned CIT(A) ought to have held that the action of reopening is without jurisdiction and not permissible either in law or on facts. 2. .The learned CIT(A) has erred both in law and on the facts of the case in confirming the action of the AO of disallowing depreciation of Rs. 14,24,343/- claimed u/s.32 of the Act. 3. The learned CIT(A) has erred in law and on facts of the case in confirming the action of the AO of disallowing expense of Rs. 30,23,990/- u/s.40(a)(ia)r.w.s.l94IoftheAct. 4. Both the lower authorities erred in law and on facts in applying s.1941 of the Act which is not at all applicab....
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....009. Insurance along with registration was also done on 31.03.2009 and assessee has claimed depreciation on these vehicles @ 50% and same was doubted by the assessing officer. 4. Assessee contention was that vehicles were purchased on 31.03.2009 and were put to use on 31.03.2009. And there was a carting trip for L & T from Nareshwar to Karjan site. But in the absence of any document report with regard to carting trip for L & T from Nareshwar to Karjan site, assessing officer disallowed the claim of depreciation @ 50% by the assessee and made addition of Rs. 14,24,343/-. 5. Against the said order, assessee preferred first statutory appeal before the ld. CIT(A) who confirmed the action of the A.O. 6. Now assessee has come before us b....
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....erefore, machineries kept ready for use could also be treated as in passive use, so that assessee could be allowed depreciation even though its machineries were used for short period - Held, yes [Para 7.3] [In favour of assessee] Section 40(a)(ia) of the Income-tax Act, 1961 - Business disallowance - Interest etc. paid to resident without deduction of tax at source (Applicability of) - Assessment year 2005-06 -Whether where assessee made payments to C & F agents for purchase of plant and machinery, since no such claim was made in profit and loss account, no addition could be made under section 40(a)(ia), even if no TDS was deducted on same - Held, yes [Para 10] [In favour of assessee] Section 40A(3) of the Income-tax Act, ....
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....ssing officer to allow the claim of depreciation of Rs. 14,24,343/- u/s. 32 of the Act. 11. Next ground is relating to disallowance of expenses of Rs. 30,23,990/- u/s. 40(a)(ia) of the Act. 12. During the assessment proceedings, A.O. noticed that the assessee had taken four vehicles on rent bearing registration nos. 4585, 8841, 8842 and 8843 from Pallavi S. Desai @ Rs. 45,000/- per month and paid Rs. 21,60,000/- in the year under consideration. Similarly vehicles bearing registration nos. 5282 & 8842 were taken on rent from Shreenathji Transport at Rs. 60,000/- each per month and paid Rs. 12,00,000/- in the year under consideration. Assessee had deducted tax at @ 1% u/s. 194C of the Act. A.O. was of the opinion that assessee ought to ....
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....following observation: 10. The issue whether a disallowance under section 40(a)(ia) can be made even in a situation where there is a short deduction of tax at source, even if that be so, is no longer res integra, Hon'ble Calcutta High Court, in the case of CIT vs. S K Tekriwal [(2014) 361 ITR 432 (Cal)] has, dismissing the appeal of the commissioner on the ground that no substantial question of law arises, reproduced and confirmed the following stand of a coordinate bench: In the present case before us the assessee has deducted tax u/s. 194C(2) of the Act being payments made to sub-contractors and it is not a case of non-deduction of tax or no deduction of tax as is the import of section 40(a)(ia) of the Act. But the reven....
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.... u/s. 194C(2) of the Act and not u/s. 194I of the Act and there is no allegation that this TDS is not deposited with the Government account. We are of the view that the provisions of section 40(a)(ia) of the Act has two limbs one is where, inter alia, assessee has to deduct tax and the second where after deducting tax, inter alia, the assessee has to pay into Government Account. There is nothing in the said section to treat, inter alia, the assessee as defaulter where there is a shortfall in deduction. With regard to the shortfall, it cannot be assumed that there is a default as the deduction is not as required by or under the Act, but the facts is that this expression, 'on which tax is deductible at source under Chapter XVII-B and such tax....