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2012 (5) TMI 760 - AT - Income TaxAddition made under section 36(1)(iii) - Held that:- AO noted that the assessee had shown capital work-in-progress in its Balance Sheet and consequently computed disallowance in view of the provisions of proviso to section 36(1)(iii). The CIT (Appeals) has given the finding that no loan had been raised by the assessee company for the purchase of furnace or for the construction of building. The said finding of the CIT (Appeals) had not been controverted by the learned D.R. for the Revenue. Further the CIT (Appeals) has also noted that the total investment made by the assessee during the year on capital work-in-progress was ₹ 42.46 lacs spent on furnace and ₹ 33.23 lacs on the building as against the net profit of the assessee for the year at ₹ 1.97 crores. We find no merit in the disallowance made by the Assessing Officer. Uploading the order of the CIT (Appeals) we dismiss ground No.1 raised by the Revenue. TDS u/s 194A - addition made by invoking provisions of section 40(a)(ia) - Held that:- The payment of interest being made to a bank is outside the purview of deduction of tax under section 194A of the Act. Thus, the assessee was not liable to deduct TDS on such payment of interest on the installment due to M/s UTI Bank Ltd. Upholding the order of the CIT (Appeals) we dismiss ground No.2 raised by the Revenue.
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