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2015 (10) TMI 2429 - AT - Income TaxDisallowance of additional depreciation u/s. 32(1)(iia) - Held that:- The claim of assessee in respect of additional depreciation has been denied by the AO on the ground that the assessee is not in the business of manufacture or production of goods or articles. Though the AO has recorded this fact that the assessee is in the activity of excavation, crushing and screening of iron ore, but such activity has been carried out by the assessee on behalf of the mine owners. Thus, the AO was of the view that assessee is not entitled for additional depreciation. Apart from this finding, the AO has not examined the source of revenue earned by the assessee from various activities and whether the assessee is doing this activity of excavation, crushing and screening of iron ore by purchasing the iron ore and then selling the same, or it was on contract basis on behalf of other parties. - this issue requires a proper verification and examination of relevant facts at the level of the Assessing Officer and then, adjudication as per law - Decided in favour of assessee by way of remand. Disallowance u/s. 40(a)(ia) - assessee has paid interest/financial charges without deduction of tax as required u/s. 194C - Held that:- This issue is decided in favour of the assessee. The disallowance made by the AO u/s. 40(a)(ia) of the Act is deleted. See case of Merilyn Shipping [2012 (4) TMI 290 - ITAT VISAKHAPATNAM] concluding that provisions of Section 40(a)(ia) are applicable only to the amounts of expenditure which are payable as on the date 31st March of every year and it cannot be invoked to disallow expenditure which has been actually paid during the previous year, without deduction of TDS. - Decided in favour of assessee
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