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2017 (3) TMI 1466 - AT - Income TaxTDS u/s 194J - incurred expense towards the technical and professional charges without deducting the TDS - addition u/s. 40(a)(ia) - Held that:- Since the expenses has not been claimed in the profit and loss account, the question of any disallowance under section 40(a)(ia) of the Act does not arise. A careful analysis to the above provisions of Section 40(a)(ia) reveals that it is applicable to sums allowable u/s 30 to 38 of the Act. Hence, if any capital expense is allowable as deduction u/s 30 to 38 of the Act while computing income under the head “Profits and gains from business or profession”, the same will be covered u/s 40(a)(ia) of the Act. Now, the issue arises where the claim of depreciation u/s 32 of the Act is covered u/s 40(a)(ia) of the Act. The provisions of Section 40(a)(ia) of the Act is applicable to payments specified therein which are allowable u/s 30 to 38 of the Act. Since the claim of depreciation is not payment or expenditure in strict sense but the same is statutory allowance, so strictly the claim of depreciation will not be covered u/s 40(a)(ia) of the Act. Further, the actual cost and WDV is defined in Section 43 of the Act and provisions of Section 40(a)(ia) of the Act does not override the provisions of Section 43 of the Act. In view of above, we are of the considered opinion that the provisions of section 40(a)(ia) of the Act is not applicable in the instant case. Therefore, there is no question of deducting the TDS on capital expenditure. Short deduction of TDS - Held that:- In case of short deduction the Hon’ble Calcutta High Court in the case of M/s S.K Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT ] has held that the disallowances cannot be made under the provisions of section 40(a)(ia) of the Act. Thus, we find no reason to interfere in the order of ld CIT(A). Hence, the ground of appeal raised by the revenue is dismissed.
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