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2017 (5) TMI 1269 - AT - Income TaxExpenditure on acquisition of Engineering Drawings etc - TDS liability - nature of expenditure - Held that:- At the time of hearing, the assessee, at the outset, submitted that he concedes the position that the expenditure in question was capital in nature and thus, the ground of appeal raised by the revenue deserves to be succeed. Thus allow the appeal of the revenue. The AO is further directed to allow depreciation as per rules with respect to the impugned capital expenditure. Short deduction of tds - payment made for hiring of crane services in terms - TDS u/s 194C or 194I - Held that:- The invoking the provisions of section 40(a) (ia) of the Act in a case of short deduction of tax is not justified, because of the phraseology of section 40(a)(ia) of the Act itself. A perusal of section 40(a) (ia) clearly suggests that it gets triggered only in a situation when a tax is deductible at source but the same has not been deducted. A similar situation has been addressed by the Hon’ble Kolkata High Court in the case of S K Tekriwal (2012 (12) TMI 873 - CALCUTTA HIGH COURT ), wherein it has been held that no disallowance could be made by applying section 40(a)(ia) of the Act in a case where tax was deducted at source under a wrong provision resulting in short deduction of tax. Thus disallowance deleted - Decided in favour of assessee.
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