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2015 (12) TMI 1243 - AT - Income TaxTDS u/s 194H - Disallowance of sales promotion expenses - non-deduction of TDS by invoking the provisions of sec.40(a)(ia) - Held that:- The issue is to be decided by the Assessing Officer in the light of the Special Bench decision of the Tribunal in the case of Merilyn Shipping and Transports vs. Addl. CIT (2012 (4) TMI 290 - ITAT VISAKHAPATNAM ) wherein it was held 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. In view of the above, we remit this issue to the file of the AO for fresh consideration. At this stage, we refrain from deciding the issue of sec. 194-H of the Act, to these payments. TDS u/s 194A - Disallowance u/s.40(a)(ia) - non-deduction of TDS on discount/factoring charges paid to M/s. Canbank Factors Ltd. - Held that:- Special Bench of the Tribunal in the case of Merilyn Shipping and Transports vs. ACIT (2012 (4) TMI 290 - ITAT VISAKHAPATNAM ) and judgment of CIT vs. M/s. Vector Shipping Services (P) Ltd [2013 (7) TMI 622 - ALLAHABAD HIGH COURT] held that sec 40(a)(ia) is not applicable when there is no outstanding balance at the end of the close of the year relevant to the assessment year in respect of these payment. However, the assessee has not brought on record, the details of outstanding expenses or schedule of sundry creditors showing whether the impugned amount is outstanding at the end of the close of the previous year relevant to the assessment year either in the name of the party or outstanding expenses. Hence, in the interest of justice, we are remitting the issue back to the file of the Assessing Officer with direction to verify the claim of the assessee and the assessee shall place necessary evidence in support of his claim. Depreciation on aluminium cans and crates at 50% - Held that:- As per Index 1 to item (4), containers made of glass, plastic as refills entitled for depreciation at 50%, where the assessee claimed depreciation at 50% on aluminium cans. Being so, it is not fit under that category as mentioned in Index I to item No.4 of I.T.Rules. As such, the lower authorities are justified in restricting depreciation at 15% on w.d.v. Accordingly, this ground is dismissed.
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