2020 (12) TMI 174

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..... d that the order has been passed in violation of the principles of natural justice. However, at the time of hearing, this C.O. was not pressed by the assessee. Accordingly, we dismiss C.O. as not pressed. Coming to the Revenue's appeal, the facts are that the Assessment Order under section 143(3) was passed on 22.04.2016 determining the total income of the assessee at Rs. 68,20,52,160/-. The assessee said to be claimed depreciation on plat and machinery @ 60% against the applicable rate of 10%. However, the AO disallowed the claim under section 14A of the Income Tax Act, 1961 (hereafter called 'the Act'). In addition to this, there was a disallowance with regard to interest on belated TDS claimed. On appeal, CIT(A) observed that these issu .....

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..... ing computer and computer peripherals. Regarding interest on delayed payment of TDS, it was submitted that interest on delayed payment of Service Tax and TDS which was in the nature of compensatory and not int he nature of penalty and being a compensatory nature, it is allowable expenditure. 4. We have heard both the parties and perused the material on record. The assessee disclosed the office equipment under separate head entitled for 60% depreciation. Now the question before us is whether these office equipment - computers or computer parts are entitled for depreciation at 60%. The learned DR submitted that in the judgment of Madras High Court in the case of CIT Vs. Pierce Leslie and Co. Ltd., 99 taxman 471 and in the case of CIT Vs. Ala .....

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..... tion 154 of the Act can only be made with regard to mistake of fact or law committed by the officer passing the order becomes apparent from the record, rectification is not possible if the question is debatable. A point which was not examined on facts or in law cannot be dealt with as a mistake apparent from the record. 4.2 With regard to disallowance of interest on delayed payment of TDS, in our opinion, it is compensatory in nature and not penal in nature as held by Co-ordinate Bench in the case of M/s. IDS Next Business Solutions Pvt. Ltd., in ITA No.510/Bang/2018 vide order dated 15.06.2018. Accordingly, it is an allowable expenditure. In this issue, CIT(A) has taken correct view and no interference is called for. 5. In the result, ap .....

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