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2021 (5) TMI 914 - AT - Income TaxTDS u/s 194A - Disallowance u/s 40(a)(a) on account of non-deduction of tax at source on interest payments - HELD THAT:- As decided in own case [2021 (5) TMI 735 - ITAT HYDERABAD] assessee has deposited the amount with the Court, but, it has not actually paid to the actual recipients directly i.e., pattadars. On analysis of the above cited section and Circulars, it is clear that the assessee is not responsible for deducting tax deduction at source and assessee is also not sure that when the amount shall be paid to the actual recipients/pattadars. In our considered opinion, the addition made in this regard is not sustainable in the eyes of law and, therefore, the addition is deleted. Depreciation on plant and machinery - AO allowed depreciation @ 10% treating it as ‘building’ as against the assessee’s claim of 15% as plant & machinery - HELD THAT:- As decided in own case [2021 (5) TMI 735 - ITAT HYDERABAD] we allow this ground of appeal of the assessee by holding that the assessee is entitled to charge depreciation @ 15% under the block of assets “plant and machinery”, as against 10% made by the AO. This ground of appeal raised in both the appeals under consideration is allowed. Disallowance of expenditure by way of penalty or fine for violation of any law for the time being in force - allowable revenue expenditure u/s 37(1) or not? - Since the assessee failed to substantiate the said expenditure with documentary evidence, the AO made the addition, which was confirmed by the CIT(A) - HELD THAT:- The submissions of the assessee is that these are the payments made to various state government departments for delay in submission of form or document or compliance with the procedures, in which case, the payment is not for violation of law but compensation for not complying with law and allowable expenditure as normal business expenditure u/s 37(1) of the Act. We are in agreement with the submissions of the assessee and, therefore, we direct the AO to delete the addition made on this count. Accordingly, this ground of appeal is allowed.
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