Case Law Details
ACIT Vs Quippo Oil & Gas Infrastructure Ltd. (ITAT Delhi)
ITAT Delhi held that disallowance u/s 40(a)(ia) of the Income Tax Act unjustified as there was due compliance with provisions of section 194C(6). Violation of provisions of section 194C(7) doesn’t attract disallowance u/s 40(a)(ia) of Income Tax Act.
Facts- The assessee filed return of income for A.Y. 2013-14 declaring loss of Rs. 10,63,43,600/-. The assessment order came to be passed disallowing the depreciation of Rs.3,01,78,780/- on oil drilling rigs, unpaid provisions of leave encashment of Rs. 4,32,147/-, the mobilization of expenses u/s 40(a)(ia) of the Act of Rs. 4,77,50,400/- and further disallowed the capitalization and repair and maintenance expenses of Rs.5,02,90,513/-.
The assessee has preferred an appeal before the CIT(A) and the Ld.CIT(A) deleted the addition of Rs. 3,01,78,780/- made on account of disallowance of excess depreciation, deleted the disallowance of Rs. 7,53,447/- made on account of unpaid provisions of leave encashment u/s 43B of the Act, deleted the disallowance of mobilization expenses made to Rs. 4,77,50,400/- u/s 40(a)(ia) of the Act and also deleted the addition of Rs. 5,02,90,513/- being disallowance of capital expenditure.
Aggrieved by the order of the Ld.CIT(A), the Revenue has filed the present appeal.
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