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2010 (1) TMI 813 - ITAT, NEW DELHICapital or Revenue - Disallowance amortization of Development and License expenses - expenses incurred on account of license fees and expenses incurred for obtaining license - Held that:- claim of the assessee on account of expenses for registration of the product cannot be held to be capital expenditure but the expenses on acquisition of technical know how of a new product has to be treated as capital expenditure - claim of the assessee partly allowed R & D expenses - product bio efficacy study conducted for marketing of the products - held that:- these expenses are regarding product fess including payment to research fellow, cost of accessories, chemicals, brass-wares and other misc. expenses. - In the absence of any finding that any new product was developed by incurring these expenses, addition to be deleted - decided in favor of assessee. Genuine business expenditure - foreign traveling expenses - held that:- After holding that part of the expenses incurred by the assessee for which proper details and supporting vouchers are not furnished has to be considered for making an estimated disallowance on account of personal expenses and non business expenses, we feel that such estimate of personal and non business expenses at 50% of expenses is excessive and we are of the considered opinion that to meet the ends of justice, the disallowance should be of 25% of such expenses for which supporting vouchers and details could not be produced by the assessee. Prior period expenses - payment of electricity charges - held that:- in a letter dated 13.8.2003 written by Sharma Cooperative Group Housing Society, it is mentioned that the payment is due from 1.5.2002 to 30.6.2003. - no where it is mentioned that the demand is ascertained during the present year. - the assessee has not filed any reply to show that the demand has crystallized during this year. - Decided against the assessee.
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