TMI Blog2020 (4) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - IT (T.P) A No.544/Bang/2016, 634/Bang/2016 (Assessment Year: 2011-12) - - - Dated:- 18-11-2019 - SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessee By: Shri Soumitra Kumar Chakraborthy, C.A. Revenue By: Ms. Neera Malhotra, CIT (D.R) ORDER PER SHRI B.R. BASKARAN, AM : These cross appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d accordingly disallowed above said amount ₹ 51.50 lakhs for Income Tax purposes. Accordingly the assessee claimed depreciation on the above said amount. While passing draft assessment order, the Assessing Officer noticed that the assessee has not deducted tax at source from the payments made for purchase of software to the extent of ₹ 6,24,451/-. The assessee had claimed depreciation of ₹ 3.25 lakhs on the above said amount. The AO, accordingly, disallowed depreciation claim of ₹ 3.25 lakhs under Section 40(a)(ia) of the Act, since the assessee had not deducted tax at source from the payments made for purchase of software. The ld. DRP, however, held that the software purchases are revenue in nature. Accordingly, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . IT ((International Taxation) Vs. Kawasaki Micro Electronics Inc. (C.O. No.18/Bang/2015 in IT(IT)A No.1221/Bang/2014 (Bangalore Tribunal) ii. SMS Demag (P) Ltd. Vs. DCIT (2010) 132 TTJ 498 (Delhi Tribunal) iii. CIT Vs. Mark Auto Industries Limited (ITA No.57 of 2009 unreported P H High Court) and iv. SKOL Breweries Ltd. Vs. ACIT (2013) 29 taxmann.com 111 (Mumbai Tribunal) Accordingly, the learned Authorised Representative submitted that the disallowance made by the DRP should be directed to be deleted. 7. We heard the ld. DR and perused the record. During the course of hearing, the ld. AR invited our attention to the statement of total income placed at pages 53 and 73-74 of the Paper Book in order to show that it has dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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