TMI Blog2018 (9) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... Once it is held that the provision of section 194C of the Act is not attracted as a natural corollary no disallowance can be made u/s 40(a)(ia) of the Act. - decided in favour of assessee Depreciation on assets classified as temporary building - Held that:- Both the Commissioner and the Tribunal came to concurrent finding that the structures of the assessee ought to be treated as purely temporary erections such as wooden structures. The Commissioner, in his order, observed that the temporary structures comprised of wooden structures with asbestos roofs constructed for facilitating the transmission works of the appellant and decided the issue in favour of the assessee.This finding of CIT(A) has not been contested as incorrect by the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round that these were temporary erections in the nature of wooden structures. The assessee is engaged in the business of transmission of power from the power generating companies in West Bengal to the distribution companies. The Tribunal held on this point as follows: We have given a very careful consideration to the rival submissions. It is clear from the order of Tariff Regulatory Commission that the amount in question is not in the nature of transmission charges. Therefore the very basis on which the AO proceeded to make the disallowance by holding that the payment in question was liable to TDS u/s 194C of the Act was erroneous. Once it is held that the provision of section 194C of the Act is not attracted as a natural corol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat he has placed reliance on the depreciation chart of the erstwhile WBSEB and WBSEDCL entity which was formed consequent to the splitting up of WBSEB. The AO has gone by the fact that even WBSEB claimed depreciation only at 10% on assets classified as temporary building. The CIT(A) on the other hand in the present case has examined the items of temporary building and has given a categorical finding that the structures in question were temporary structures being sheds made out of wood with asbestos roof constructed for facilitating thet transmission works of the assessee. This finding of CIT(A) has not been contested as incorrect by the revenue. The fact that WBSEB and WBSEDCL had claimed depreciation at 10% on these temporary structures c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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