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2018 (6) TMI 882 - AT - Income TaxHigher depreciation rate claimed on transmit complete mixer and loaders and lower loader machine - whether Assessing Officer had rightly deleted assessee’s higher depreciation claimed on both mixer as well as loader machine(s) in question? - Held that:- We find no substance in its instant plea as it has already come on record that lower appellate finding(s) have duly considered the types of plant and machinery / vehicles in light of the relevant case law deciding the very issue in assessee’s favour. There is no distinction on facts or law being pointed out in Revenue’s pleadings. TDS u/s 194A - Disallowance of interest paid to finance companies u/s. 40(a)(ia) without deducting TDS - Assessing Officer mentioned that the purchase was on basis of a hire purchase agreement and assessee is liable to deduct tax at source on interest payment - Held that:- We find that the CIT(A) has considered the entire issue in light of hon'ble apex court’s decision in “ICDS” case [2013 (1) TMI 344 - SUPREME COURT] as well as the relevant hire purchase agreement as per CBDT’s Circular 647/1993 dated 22.03.1993 deals with application of section 194 on Hire Purchase agreements. Hire Purchase is a system by which a buyer pays for a thing in regular installments while enjoying the use of it. During the repayment period, ownership (title) of the item does not pass to the buyer. Upon the full payment of the loan, the title passes to the buyer. If, directly or indirectly, it is apparent that the lessor has agreed to a permanent beneficial enjoyment of the asset by the lessee, the lessee may be treated as a hire-purchase transaction. Hire Purchase agreement is to be examined and decided whether the asset has been obtained under a true Hire Purchase agreement.
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