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2013 (11) TMI 149 - ITAT MUMBAISoftware consumable expenses – revenue or capital expenditure - Held that:- Following Amway India Enterprises [2011 (11) TMI 4 - DELHI HIGH COURT] – The expenditure was incurred for application software and not for system software – The software was not of enduring nature and would become obsolete - Therefore it is revenue expenditure - Decided in favour of assessee. Software and hardware expenses – Held that:- The assessee did not made a claim before AO but submitted before FAA that the software/ hardware was for trading purposes – the assessee never claimed these as assets of the appellant-company - profit arising out of trading of these was offered for taxation - The issue remitted back for fresh adjudication – Partly allowed in favour of assessee. Deduction u/s 80HHE – On the basis of regular provisions under “profits and gains from business and profession” or book profits as per section 115JB - Held that:- Following Bhari Information Technology systems P. Ltd. [ 2011 (10) TMI 19 - Supreme Court of India] –Deduction under Section 80HHE has to be worked out on the basis of adjusted book profit under Section 115JA and not on the basis of the profits computed under regular provisions of law applicable to computation of profits and gains of business - Decided in favor of assesseee.
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