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2015 (5) TMI 987 - AT - Income TaxDisallowance under Section 14A in a proceeding under Section 154 - Held that:- Assessing Officer has amended the order passed under the provisions of Income-tax Act. According to the Ld. D.R., in this case, what was rectified is only an arithmetical error which crept in the order. The Ld. D.R. submitted that on the basis of material already available on record, the Assessing Officer rectified the arithmetical error which crept. Therefore, it is not a debatable issue. Hence, the Assessing Officer has rightly disallowed the claim of the assessee. Disallowance paid as machine hire charges under Section 40(a)(ia) - Held that:- The assessee claims that it is a business expenditure. For the purpose of business, business expenditure would fall under Section 37(1) of the Act. Therefore, this Tribunal is of the considered opinion that the provisions of Section 40 of the Act is equally applicable. Hire charges paid by the assessee on machine is liable for deduction of tax under Section 194-I of the Act. Therefore, the assessee is expected to deduct tax at the time of making the payment. Therefore, the alternative contention of the assessee is also does not hold any merit at all. Accordingly, the order of the CIT(Appeals) is confirmed. Depreciation on Maruthi car - Held that:- The assessee has claimed depreciation on Innova car at 50% of normal rate. Therefore, this Tribunal is of the considered opinion that there is no question of making any further disallowance on Maruthi car. It is not in dispute that Maruthi car was used for business purpose. Therefore, the assessee is entitled to claim depreciation on the Maruthi car. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to allow the depreciation on Maruthi car maintenance expenses as claimed by the assessee
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