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2014 (2) TMI 173 - ITAT DELHIDeletion made of capitalization of capital expenditure u/s 37(1) of the Act – Software expenses – Held that:- The decision in CIT - I Versus ACL Wireless Ltd. [2013 (12) TMI 1160 - DELHI HIGH COURT] followed - There has to be recurring expenditure which has to be incurred in the said business to ensure sale of the software,for removal of obstructions, restrictions or disabilities on the sale - The determination should be based upon consideration of facts and circumstances and by applying principles of commercial trading and business expediency – Decided against Revenue. Deletion made of capitalization of license fee – Fees paid as Royalty – Held that:- The decision in Income Tax Officer Versus M/s ACL Wireless Wireless Limited [2014 (1) TMI 1305 - ITAT DELHI] followed - the expenditure in question was incurred as a matter of routine, for the business and commercial expediency of the assessee’s business – Decided against Revenue. Deletion made u/s 40(a)(ia) of the Act – TDS not deducted – Held that:- The assessee claimed that he did deduct the tax at source and deposited the same with the Government of India before the due date for filing of the return - the claim of the assessee needs to be factually examined - order set aside and the matter remitted back to the AO - Decided in favour of Revenue. Addition made for Non-deduction of TDS – Application of Section 9 of the Act - Held that:- The decision in CIT Vs. Angelique International Ltd. - [2013 (10) TMI 17 - DELHI HIGH COURT] followed - payments in the form of a commission or discount to the foreign party were not chargeable to tax in India under section 9(1)(vii) of the Act - in the relevant accounting year tax did not have to be deducted - The deletion of disallowance under section 40(a)(i) was justified – Decided against Revenue.
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