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2020 (4) TMI 518 - AT - Income TaxDisallowance of computer software expenses - AO disallowed depreciation claim u/s 40(a)(ia) since the assessee had not deducted tax at source from the payments made for purchase of software - HELD THAT:- Since the assessee has itself disallowed the entire purchase cost of softwares, then making addition of ₹ 6.24 lakhs (which is included in the amount already disallowed by the assessee) again to the total income would amount to double disallowance which is not permitted under the Income Tax Act. Accordingly, we find merit in the submissions of learned Authorised Representative. As relying on case SMS DEMAG PVT. LTD. VERSUS DCIT [2010 (1) TMI 624 - ITAT, DELHI], SKOL BREWERIES LTD. [2013 (1) TMI 623 - ITAT MUMBAI] and M/S MARK AUTO INDUSTRIES LTD. [2013 (1) TMI 448 - PUNJAB AND HARYANA HIGH COURT] depreciation is not subject to disallowance under Section 40(a)(ia) of the Act. Accordingly, we direct the Assessing Officer to delete the disallowance - Decided in favour of assessee.
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