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2021 (11) TMI 529 - AT - Income TaxTDS u/s 195 - Disallowance invoking section 40(a) on account of Foster’s Brand - said amount was capitalized by the assessee in the books under Fixed Assets and depreciation on the same was claimed @ of 25% under section 32(1) - CIT(A) directed the Assessing Officer to delete the addition brought by disallowing depreciation - HELD THAT:- No infirmity in the order of the learned CIT(A) which is self–explained and speaking order as reproduced above. Before us, during the course of hearing, both the AR for the parties conceded that similar issue has been decided by Anheuser Busch InBev India Ltd. [2020 (3) TMI 212 - ITAT MUMBAI] and Anheuser Busch InBev India Ltd. [2020 (3) TMI 212 - ITAT MUMBAI] wherein the Tribunal has deleted identical addition by holding that the claim of depreciation under section 32 of the Act is not in respect of the amount paid or payable which is subject to TDS, but is a statutory deduction on an asset which is eligible for deduction of depreciation. Consistent view being maintained by the Co–ordinate Bench of the Tribunal in assessee’s own case cited supra, similar directions are issued on this issue also. Consequently, we have no hesitation in upholding the order of the learned CIT(A) by dismissing the grounds no.1 to 3, raised by the Revenue. Disallowance of grossed–up expenses to the extent of taxes withheld u/s 195A - HELD THAT:- We find that identical issue has been decided by the Co–ordinate Bench of the Tribunal in assessee’s own case in ACIT v/s Anheuser Busch InBev India Ltd. [2020 (3) TMI 212 - ITAT MUMBAI] and Anheuser Busch InBev India Ltd. v/s ACIT. [2020 (3) TMI 212 - ITAT MUMBAI] wherein the Tribunal has decided the issue in favour of the assessee and against the Revenue as held that assessee has computed TDS on a net of tax basis and no tax has been separately debited to the Profit & Loss Account. It is also a fact on record that as per the borrowing arrangement, the tax liability, if any, on payment of interest has to be borne by the assessee. Therefore, the tax withheld has to be allowed as expenditure to the assessee. TDS liability on commission payment - CIT(A) did not consider the additional evidences filed by the assessee - HELD THAT:- Assessee during the course of first appellate authority, had filed certain additional evidences in support of its claim which were ignored by the learned CIT(A) consequent to which the order of the learned CIT(A) in the instant case becomes cryptic one which is without deliberating upon the provisions of the Act in disregarding the admissibility of the additional evidences filed by the assessee. Considering the legal proposition, the learned CIT(A) ought to have considered the additional evidences adduced by the assessee and could have decided the issue on merit and since the learned CIT(A) is failed to do so, therefore, we deem it fit and proper to admit the additional evidences filed by the assessee.
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