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2012 (10) TMI 290 - PUNJAB AND HARYANA, HIGH COURTDisallowance of Depreciation u/s 32(1) - Held that:- A plain reading of the Explanation 5 of section 32(1)inserted by Finance Act, 2001 w.e.f. 1.4.2002 that depreciation shall apply wherever the assessee may or may not have claimed deduction in respect of depreciation in computing the income - AO is duty bound to allow depreciation even without there being claim by the assessee wherever the same is admissible to the assessee - in favour of the assessee. Allowance is mandatory u/s 40 (a)(ia) - Held that:- Observations recorded by the Tribunal at the time of hearing that the assessee fairly stated that the assessee was statutorily obliged to deduct tax at source out of rent paid by him but it was not deducted at source by the assessee and, therefore, the provisions of section 40(a)(ia) were applicable and as no material is presented to come to a different conclusion from what has been recorded by the Tribunal or to put it differently, it cannot be said that the Tribunal had recorded the observations noted above erroneously - against assessee.
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