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2018 (9) TMI 108 - HC - Income TaxTDS u/s 194C - payment of transmission charges by the assessee to the West Bengal Power Development Corporation Ltd. - Held that - The assessee is engaged in the business of transmission of power from the power generating companies in West Bengal to the distribution companies. It is clear from the order of Tariff Regulatory Commission that the amount in question is not in the nature of transmission charges. Therefore the very basis on which the AO proceeded to make the disallowance by holding that the payment in question was liable to TDS u/s 194C of the Act was erroneous. Once it is held that the provision of section 194C of the Act is not attracted as a natural corollary no disallowance can be made u/s 40(a)(ia) of the Act. - decided in favour of assessee Depreciation on assets classified as temporary building - Held that - Both the Commissioner and the Tribunal came to concurrent finding that the structures of the assessee ought to be treated as purely temporary erections such as wooden structures. The Commissioner in his order observed that the temporary structures comprised of wooden structures with asbestos roofs constructed for facilitating the transmission works of the appellant and decided the issue in favour of the assessee.This finding of CIT(A) has not been contested as incorrect by the revenue. The fact that WBSEB and WBSEDCL had claimed depreciation at 10% on these temporary structures cannot be the basis to disallow a legitimate claim of depreciation at 100% on temporary structures which is otherwise allowable to the assessee in law. We are therefore of the view that the conclusions of CIT(A) on this issue do not call for any interference - decided in favour of the assessee
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