9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 715 - AT - Income TaxDisallowance of depreciation claimed u/s. 32 - assessee could not produce any proof with regard to put to use the said vehicles on 31.03.2009 - HELD THAT - Since vehicle was put to use on 31.03.2009 and in support of its contention, assessee has submitted copies of ledger before the lower authorities and respectfully following the aforesaid judgments, we allow claim of the assessee and this ground of the assessee is allowed and we direct assessing officer to allow the claim of depreciation Short deduction of tds - disallowance of expenses u/s. 40(a)(ia) - TDS u/s. 194C or u/s 194I - disallowance of proportionate expenditure - HELD THAT - As decided in M/S SK. TEKRIWAL 2012 (12) TMI 873 - CALCUTTA HIGH COURT provisions of section 40(a)(ia) 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 has not been deducted or, after deduction has not been paid on or before the due date specified in sub-section 3(1) of section 139. Section 40(a)(ia) refers only to the duty to deduct tax and pay to government account. If there is any shortfall due to any difference of opinion as to the taxability of any item or the nature of payments falling under various TDS provisions, the assessee can be declared to be an assessee in default u/s. 201 and no disallowance can be made by invoking the provisions of section 40(a)(ia) - AO either could accept the claim of the assessee or could disallow the claim of the assessee but he could not have disallowed the proportionate expenditure - Decided in favour of assessee.
Issues:
1. Reopening of assessment under section 147 2. Disallowance of depreciation claimed under section 32 of the Act 3. Disallowance of expenses under section 40(a)(ia) r.w.s. 194I of the Act 4. Levying of interest under section 234A/B/C of the Act Analysis: Reopening of Assessment under Section 147: The appeal challenged the order of the Ld. CIT(A) confirming the AO's decision to reopen the assessment under section 147 of the Act. The appellant argued that the reopening was without jurisdiction and not permissible in law or on facts. However, the appellant did not press this ground during the appeal. Hence, this issue was not further pursued. Disallowance of Depreciation under Section 32: The appellant, a Transport Carting Contractor, claimed depreciation on three TATA trippers acquired on 31.03.2009. The AO disallowed the depreciation claim of ?14,24,343, citing lack of proof regarding the vehicles' use on the same day of acquisition. The CIT(A) upheld this disallowance. However, the appellant submitted a paper book with evidence supporting the vehicles' use on the acquisition day. Referring to a Co-ordinate Bench's decision and a High Court judgment, the ITAT allowed the depreciation claim, emphasizing the wider interpretation of "use" under section 32 of the Act. Disallowance of Expenses under Section 40(a)(ia) r.w.s. 194I: The AO disallowed expenses of ?30,23,990, contending that the appellant failed to deduct tax at 10% under section 194I for rent paid on vehicles. The CIT(A) upheld this disallowance. The appellant argued that the authorities lacked the power to disallow the proportionate expenditure and that it amounted to a miscarriage of justice. Citing a Co-ordinate Bench's decision and a Calcutta High Court judgment, the ITAT allowed the appellant's claim, stating that the AO could either accept or reject the claim but not disallow proportionate expenditure. Levying of Interest under Section 234A/B/C: The CIT(A) confirmed the AO's decision to levy interest under section 234A/B/C of the Act. However, the ITAT did not provide a detailed analysis of this issue in the judgment. In conclusion, the ITAT allowed the appeal filed by the Assessee, overturning the decisions of the lower authorities regarding the disallowance of depreciation and expenses. The judgment highlighted the importance of providing sufficient evidence to support claims and emphasized the need for a proper interpretation of relevant legal provisions.
|
