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2019 (6) TMI 427 - AT - Income TaxTDS u/s 195 - Disallowance of commission paid to non-residence - DTAA provisions - HELD THAT:- CIT(A) has rightly deleted this addition as the commission paid to non-resident cannot be treated as assessee’s income from other sources as the assessee had earned income, the said income outside India and also the payment was made to non-resident which cannot be taxable in India when the parameters of DTAAs are applied to such transactions. Besides this in assessee’s own case for A.Y. 2010-11 [2018 (4) TMI 517 - ITAT DELHI] , the Tribunal has dismissed this ground taken by the Revenue and no contrary or distinguishing facts were pointed out during the hearing in the present assessment by the Ld. DR - Decided against revenue Disallowance of polishing charges - CIT(A) restricting the addition made by disallowing 15% of polishing charges, to ₹ 3,87,925/- - HELD THAT:- We have heard both the parties and perused the material available on record. The CIT(A) has rightly allowed the expenses of ₹ 22,963/- and upheld the disallowance of ₹ 3,73,469/- as the assessee failed to furnish the requisite information in respect of payment made to 5 parties . Therefore, there is no need to interfere with the findings of the CIT(A). Addition of excess claim of depreciation on electrical fitting - plant and machinery v/s furniture and fixtures - HELD THAT:- The depreciation on electrical fittings has rightly been claimed by the assessee at 15% by treating it as part of plant and machinery and not as furniture and fixtures. It is necessary to have electrical fittings for the power supply to the machineries and plant without electrical fittings and power supply, there is no use of plant and machinery. Therefore, Ground No. 2 of assessee’s appeal is allowed. Addition on interest free advances - notional interest on interest free advances - CIT(A) upheld the said disallowance made by the AO - HELD THAT:- No addition can be made assessee has its own funds which amount to ₹ 22.54 crores as on 31/3/2011 and ₹ 23.84 crores as on 31/03/2010. Therefore, advances were given out of its own funds only. Thus, in light of the decision of M/S RELIANCE INDUSTRIES LTD [2019 (1) TMI 757 - SUPREME COURT] , no addition on account of notional interest can be made by the Assessing Officer. - Decided in favour of assessee
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