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TMI Blog2013 (11) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... see. Disallowance of depreciation on paintings which were part of furniture and fixtures - Assessee is in the business of production and distribution of advertising films and over and above it also provides assistance like making availability of locations, equipments, models and crew to the foreign as well as domestic companies – Held that:- It was submitted that hiring of the paintings for original shoots was unaffordable. Therefore, they have purchased and utilized the paintings which were either hung in the office or given to the producer for the original shoots, or used in various setting. Therefore, the claim was that paintings are also part of furniture – following the decision in Burnside Investments & Holdings Ltd. vs. Dy. CIT [1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons for deduction of tax at source are provided under section 194I, 194H, then the provisions of residuary section 194C would not apply. The AO observed that the assessee has deducted TDS @ 2.06% u/s 194 C on the payment made on Art Designing and Film Post Production whereas the TDS should have been deducted @5.61% u/s 194J of the Act as the services rendered by Prime Focus are in the nature of editing of films, hence these are in the nature of fees for professional/technical services as defined under Explanation 2 to section 9(1)(vii) of the Act; hence provision of section 194J would apply for TDS on such payments. Accordingly the AO disallowed the same u/s 40(a) (ia) of the Act. The TDS in the payments under location hire charges deducted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has correctly deducted tax under section 194C and no proceedings under section 201 were initiated for any short deduction of tax. 4. The ld. DR however relied on the orders of the authorities. 5. We have considered the issue. Without going into the merits whether the provisions of section 194C will apply or 194I or 194J will apply, the issue can be decided under the provisions of section 40(a)(ia) which was invoked by the AO. The said provision is as under :- "40. Amounts not deductible.--Notwithstanding anything to the contrary in sections 30 to 38, the following amounts shall not be deducted in computing the income chargeable under the head "Profits and gains of business or profession",-- (a) in the case of any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can not be invoked in a case of shortfall of TDS. Moreover, the revenue has also not taken any steps u/s. 201 wherein the issue whether the deduction has to be made u/s. 194I or 194J or 194C can be considered/ examined. The ground 1 to 4 and additional ground raised are considered as allowed. 6. Ground No.5 pertain to disallowance of depreciation on paintings which were part of furniture and fixtures. The assessee is in the business of production and distribution of advertising films and over and above it also provides assistance like making availability of locations, equipments, models and crew to the foreign as well as domestic companies. The assessee claimed depreciation on certain paintings purchased by it on the reason that these are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer was of the opinion that such paintings could not be taken to constitute items of furniture and fittings. On appeal, the Commissioner (Appeals), upheld the Assessing Officer s order. HELD From the dictionary meaning of the word furniture , it is clear that all articles of convenience or decoration used for the purpose of furnishing a place of business or an office are articles of furniture. In the instant case, there was no dispute that these paintings were used as decorations in the office and the office was used for the purpose of business. Therefore, these paintings constitute interior decoration to give a good look to the place of business. Therefore, the assessee was entitled to depreciation on these paintings." 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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