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2013 (10) TMI 771 - AT - Income TaxDepreciation on goodwill u/s 32 of the Income Tax Act – Held that:- Reliance has been placed upon the judgment of Apex Court in the case of CIT v. Smifs Securities Ltd. [2012 (8) TMI 713 - SUPREME COURT] – Depreciation on goodwill cannot be denied – Decided in favor of Assessee. Disallowance u/s 40(a)(ia) of the Income Tax Act – affluent treatment charges - Whether TDS is deductible u/s 194C or u/s 194J of the Income Tax Act – Held that:- Assessee agreed to deduct 2% tax under section 194C of the Act based upon an understanding reached by all the industrial undertakings in that locality and such understanding was accepted by the Revenue. It may be pointed out that in the subsequent years the Assessing Officer admitted that provisions of section 194J of the Act are not applicable in respect of payments, made by member industrial undertakings to VWEMCL, in the form of affluent treatment charges. On a conscpectus of the matter, impugned payments are not hit by the provisions of section 194J of the Act and consequently disallowance made by the Assessing Officer under section 40(a)(i) of the Act is not in accordance with law – Decided in favor of Assessee.
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