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2023 (4) TMI 851 - AT - Income TaxNature of expenses - Expenditure on stores and spares consumed during the year - disallowance on the ground that such stores and spares can be used as self-contained machinery items - HELD THAT - As this Tribunal in assessee s own case 2022 (11) TMI 129 - ITAT SURAT held that assessee has replaced the existing part of machine or replaced the parts which have become obsolete and the replacement was essential. It was held that the replacement has not increased the existing capacity, so entire expenditure was treated as revenue expenditure. Decided in favour of assessee. Non-grant/short term of TDS - HELD THAT - As counsel pointed out that AO has not granted TDS credit despite of repeated reminders. Therefore, we direct the AO to examine the relevant documents and evidences and grant the TDS credit in accordance with law. Charging of interest u/s 234C and 234D - HELD THAT - As these grounds are consequential in nature, therefore we direct the AO to compute the interest under section 234C and 234D in accordance with the provisions of law.
Issues involved:
The issues involved in the judgment are: 1. Timeliness of the order passed by CIT(A). 2. Disallowance of expenditure on stores and spares. 3. Non-grant/short grant of TDS credit. 4. Charging of excess interest under sections 234C and 234D of the Income Tax Act. Timeliness of CIT(A) order: The appeal pertained to the Assessment Year 2008-09 and challenged the order passed by the National Faceless Appeal Centre (NFAC) and CIT(A). The appellant contended that the CIT(A) order was passed prematurely before the expiry of the time granted for further submissions. However, the appellant decided not to press this ground during the proceedings. Disallowance of expenditure on stores and spares: The grounds of appeal focused on the disallowance of expenditure on stores and spares amounting to Rs.53,06,209. The appellant argued that such items should be considered as revenue expenditure rather than capital expenditure, citing previous rulings in their favor. The Tribunal referred to a previous order in the appellant's own case where a similar issue was decided in favor of the assessee. Consequently, the Tribunal allowed the grounds raised by the assessee, as the issue was found to be covered by previous decisions in favor of the appellant. Non-grant/short grant of TDS credit: The appellant raised concerns regarding the non-grant or short grant of TDS credit amounting to Rs.97,98,066. The Tribunal directed the Assessing Officer to examine the relevant documents and evidences to ensure the proper grant of TDS credit in accordance with the law. As a result, this ground raised by the assessee was allowed for statistical purposes. Charging of excess interest under sections 234C and 234D: The appellant also contested the charging of excess interest under sections 234C and 234D of the Income Tax Act. The Tribunal noted that these grounds were consequential in nature and directed the Assessing Officer to compute the interest under the relevant sections in accordance with the law. Consequently, these grounds raised by the assessee were allowed for statistical purposes. Separate Judgment: No separate judgment was delivered by the judges in this case.
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