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2019 (8) TMI 346 - ITAT MUMBAICondonation of delay of 1625 days - filing single appeal against order u/s 143(3) as well as order u/s 154 - HELD THAT:- There was no negligence or inaction on the part of the assessee in filing the appeal. It was only the advice of the Chief Accountant based on which assessee acted upon. However, on being pointed out by the CIT(A) that two separate appeals need to be filed, the assessee without further delay filed the appeal against the order u/s 143(3). The circumstances leading to delay in filing the appeal does not reveal that the act of the assessee is intentional or that there was some other motive behind in delay in filing the appeal. Thus, following the ratio laid down by the Hon'ble Supreme Court in the case of Ram Nath Sao @ Ram NathSahu and Others [2002 (2) TMI 1280 - SUPREME COURT] followed by the Pune Bench of the Tribunal in the case of Atlas Copco [2019 (4) TMI 564 - ITAT PUNE] we hereby condone the delay in filing of appeal by the assessee. Addition towards professional fees for valuation of know-how u/s 37(1) - revenue OR capital expenditure - HELD THAT:- From the nature of expenditure incurred, we find that the expenditure is not incurred for the acquisition of know-how; it is incurred only for the purpose of valuation of the know-how. Admittedly, the expenditure in isolation has not created any asset nor has it added any value in the know-how of the assessee, benefit of which can be said to have accrued to the assessee over a longer period. Further, valuation of know-how was in the course of business of the assessee as know-how pertained to the business of the assessee. Further, assessee has placed before us the detailed valuation report obtained by him for valuation of know-how and the copies of invoices for professional fee paid for carrying out the valuation exercise. Thus, we find that the said expenditure is not in the nature of capital expenditure but is in the revenue field; and, thus is allowable u/s 37(1). The order of CIT(A) is accordingly set aside and the AO is directed to delete the addition made on account of professional fee paid for valuation of know-how. - Ground allowed
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