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TMI Blog2020 (12) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... d by paying without deducting TDS - HELD THAT:- We have considered the rival submissions made on both the sides and have perused the record. The tribunal has not taken into account the decision rendered by M/S WIPRO LTD . [ 2015 (10) TMI 826 - KARNATAKA HIGH COURT] and without assigning any reasons has placed reliance on decision of the coordinate bench. Therefore, in peculiar facts of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court vide order dated 11.01.2017 on the following substantial question of law: Whether on the facts and in the circumstances of the case the Tribunal is right in law in holding that assessee is entitled for depreciation claimed under section 32 of the Act on an capitalized expenditure on imported software which was purchased by paying ₹ 4.05 Crores without deducting TDS as required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. It is submitted that consequences of failure to deduct tax at source either on expenditure under Section 32 or Section 37 result in disallowance under Section 40(a)(i) of the Act. It is also submitted that depreciation is a deduction of expenditure for the period of the asset acquired at the prescribed rate of the percentage. Hence, the depreciation would par take the character of deduction as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of Section 40(a)(ia) of the Act are not attracted. It has been further held that there is no requirement of law permitting deduction of tax out of the expenditure which has been capitalized and no amount was claimed as revenue expenditure, therefore, no disallowance under Section 40(a)(i) of the Act could be made. It is also urged that depreciation is a statutory deduction available to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taken into account the decision rendered by M/S WIPRO LTD. VS. DCIT, 383 ITR 179 (KAR) and without assigning any reasons has placed reliance on decision of the coordinate bench. Therefore, in peculiar facts of the case, the impugned order passed by the tribunal is quashed and the matter is remitted to tribunal for decision afresh and in accordance with law in the light of rival contentions m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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