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2019 (5) TMI 458 - ITAT AHMEDABADTDS u/s 195 - non-deduction of tax at source on the payment to non-residents which was disallowed u/s 40(a)(i) - India - UK DTAA - PE In India - HELD THAT:- No material whatsoever to demonstrate and establish that the services were rendered in India in lieu of the payment under consideration. The Non-resident payees were not alleged to have a redence or place of business or business connection in India either. We note that the ITAT in the own case of the assessee [2014 (10) TMI 1003 - ITAT AHMEDABAD] has held that the impugned payment is not subject to the provisions of section 195 of the Act. Thus the addition made by the AO under section 201(1) & 201(1A) of the Act was directed to be deleted. Addition made by the AO under section 201(1) & 201(1A) of the Act was directed to be deleted. - Decided in favour of assessee. Additional depreciation u/s 32(iia) on the machinery as given on lease - asset used for less than 180 days - AO disregarded the contention of the assessee by holding that the assets were used in the business of leasing and not in the business of manufacture. Thus the assessee is not entitled to the additional depreciation - HELD THAT:- It is an undisputed fact that the assessee is engaged in the manufacturing business as well as in the business of leasing. Therefore the condition imposed under section 32(iia) of the Act gets fulfilled for claiming the additional depreciation. Regarding this we find support and guidance from the judgment of Hon’ble Gujarat High Court in the case of Diamines & Chemicals Ltd [ 2013 (12) TMI 373 - GUJARAT HIGH COURT] claiming the deduction under Section 32(1)(iia) of the Income-tax Act setting up wind-mill has nothing to do with the power industry and what is required to be satisfied in order to claim additional depreciation is that the setting up of new machinery or plant should have been acquired and installed by an assessee, who was already engaged in the business of manufacture or production of any article or thing. We are of the considered opinion that the assessee is eligible for the additional depreciation under section 32(iia) of the Act. - Decided in favour of assessee.
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