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2023 (7) TMI 895 - AT - Income TaxDeduction u/s. 80IC - manufacturing activity u/s 2(29BA) - profit derived from its Rudrapur, Uttarakhand unit - Whether activities carried out at Rudrapur, Uttarakhand unit comes under the definition of manufacture as defined u/s. 2(29BA)? - HELD THAT:-We are of the considered view that the issue needs to go back to the file of the AO to decide the eligibility of the assessee to claim deduction u/s. 80IC of the Act and thus, we set aside the issue to the file of the AO and direct the Assessing Officer to re-examine the claim of the assessee in light of various averments, including necessary evidences placed to justify the activity carried out in the unit for claiming deduction u/s. 80IC of the Act for both the assessment years. Disallowance of weighted deduction claimed u/s. 35(2AB) - weighted deduction claimed for in house R&D expenditure incurred - AO has disallowed expenditure claimed over and above, what was certified by the competent authority in Form no. 3CL- as the argument of the assessee that, once the facility has been approved by the competent authority, then irrespective of quantification of the expenditure incurred for R&D purpose, the assessee is entitled to claim deduction u/s. 35(2AB) of the Act. - HELD THAT:- We find that, an identical issue has been considered by the Tribunal in assessee’s own case [2017 (5) TMI 1749 - ITAT CHENNAI], where held that the assessee is not entitled for weighted deduction u/s. 35(2AB) of the Act for expenditure incurred over and above, what was certified by the competent authority - Decided against assessee. Depreciation on UPS - @ 15%OR @ 60% - HELD THAT:- As relying on M/s. Sundaram Asset Management Ltd case [2014 (2) TMI 224 - ITAT CHENNAI] we are of the considered view that the AO and CIT(A) erred in not allowing 60% depreciation claimed on UPS and thus, we direct the AO to allow 60% depreciation on UPS as claimed by the assessee. Addition u/s 14A r.w.r. 8D - HELD THAT:- Although, the assessee claims that interest expenditure cannot be disallowed because of availability of own funds in excess of investments made in shares and securities which yield exempt income, but no details has been furnished to prove the claim. As regards, second argument of the assessee that, only those investments which yielded exempt income needs to be considered, we agree with the arguments of the assessee because the issue is settled by various decision of courts and Tribunals. However, once again there is no details from the assessee on this aspect also. Therefore,issue needs to go back to the file of the AO for further examination of facts, in light of various averments made by the assessee and also suomoto disallowance computed u/s. 14A r.w.r. 8D of the IT Rules, 1962. Hence, we set aside the issue to the file of the AO and direct the AO to re-examine the issue, in light of various averments made by the assessee as discussed herein above and re-compute disallowance u/s. 14A - In case, disallowance computed by the AO u/s. 14A r.w.r. 8D of the IT Rules, 1962 works out to lesser than amount of suomoto disallowance computed by the assessee, then the AO is directed to restrict the disallowance to the extent of suomoto disallowance. TDS u/s 195 - disallowance u/s. 40(a)(i) - non-deduction of TDS on payment made to non-resident - HELD THAT:- In assessee’s own case for assessment years 2006-07 to 2009-10 [2017 (5) TMI 1749 - ITAT CHENNAI] where, under identical set of facts, the Tribunal held that payment made to non-resident without deducting the tax at source u/s. 195 of the Act, does not come under the provisions of section 9(1)(vii) of the Act and consequently, assessee need not to deduct TDS u/s. 195 of the Act and thus, question of disallowance of said payment u/s. 40(a)(i) of the Act does not arise - Decided in favour of assessee.
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