TMI Blog2020 (12) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... per entry No.5 in the new Appendix I attached to Income Tax Rules, 1962, w.e.f. Assessment Year 2006-07 onwards, applicable rate of depreciation for computer or computer parts is at 60%. Accordingly, we direct the AO to grant depreciation on these items at 60%, and we uphold the order of CIT(A) on this issue. Disallowance u/s 14A r.w.r. 8D - Suo moto disallowance by assessee - AO has to go through various components like interest bearing funds, average value of investment, average value of total assets as appeared in the Balance Sheet of the assessee on the day and last day of the previous year, amount of expenditure directly relating to income which does not form a part of the total income. Being so, the issue is very debatable, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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 issues cannot be taken up under section 154 of the Act as these issues are highly debatable. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S, 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. Alankar Borewells 133 taxman 91, it was held that the rate of depreciation could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw 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, appeal of the Revenue and C.O. of the assessee are dismissed. Pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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