TMI Blog2014 (11) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... alt upon the issue of Performance Linked Incentive (PLI) during the course of original assessment - The assessee company has duly disclosed the change in accounting policy regarding Productivity Linked Incentive before the AO at the time of original assessment. Depreciation on plant & machinery on Account of exchange variation disallowed – software development expenses disallowed - Held that:-There is no occasion to add back ₹ 24,08,326/- as depreciation on account of exchange variation of ₹ 84,32,302/- capitalized in the cost of fixed assets that the issue of disallowances of software development in M/s Amway India Enterprises vs. DCIT [2008 (11) TMI 432 - ITAT DELHI] it has been held that software development expenses are r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hi for A.Y. 2004-05. 2. The assessee is a company filed its return of income on 01/11/2004 and the AO completed the same u/s 143(3) of the Income Tax Act, 1961 (hereinafter called the Act) on 28/02/2006 at the income of ₹ 435,03,14,230/-. On the appeal filed by the assessee, the assessee got certain relief and appeal affect u/s 143(3)/250/154 was given by the AO on 09/04/2008. 3. The assessee company is a Government of India Undertaking working under the administrative control of Ministry of Railways. It is engaged in the business of handling and transportation of containerized cargo. Its operating activities are mainly carried out at its Inland ITA No. 184/D/2013 Container Corporation of India Ltd. 2 Container Depots (ICDs). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eels aggrieved against the impugned order dated 17/10/2012 passed by the CIT(Appeals)-VI, New Delhi filed the present appeal. 7. Ld. DR relied on the order passed by the AO u/s 143(3)/147 dated 20/12/2011 and the contention raised by the Revenue in its grounds of appeal. ITA No. 184/D/2013 Container Corporation of India Ltd. 3 8. Ld. Counsel for the assessee controverted the argument advanced by ld. DR and relied upon the impugned order passed by the ld. First Appellate Authority. He had also filed a small paper book containing page 1 to 37 in which he has attached (i) written submissions filed before CIT(A) dated 07.08.2012, (ii) copy of submission made before AO u/s 132(2) regarding the claim of Productivity Linked Incentive (P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India Ltd. 4 exchange variation of ₹ 21,08,326/- and disallowance of software development expenses amounting to ₹ 18,43,759/-. 11. Before the ld. First Appellate Authority assessee pleaded that necessary pre-conditions for initiating the re-assessment proceedings has not been fulfilled in the case of assessee because the assessee disclose full details and facts regarding aforesaid claims in course of original assessment completed u/s 143(3) of the Act. The original assessment was completed u/s 143(3) of the Act after examining the relevant details regarding aforesaid claims. In fact the AO also asked the appellant to file documentary evidence in support of the aforesaid claims in response to which the assessee filed the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24 ITR 234, reiterated the earlier decisions and held that reassessment based on mere change of opinion, where material facts were already on record, is bad in law. After thoroughly going through the impugned order, we are of the view that assessee has filed its written submissions on legal issue as well as on merit of the case with the support of various decisions rendered by the Hon ble Jurisdictional High Court as well as the Hon ble Supreme Court of India along with the relevant provision of law. The ld. First Appellate Authority has thoroughly considered each and every submission of the assessee and has given its finding in para no. 5 page 11 to 22. In our considered view the ld. First Appellate Authority has passed a well reasoned ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cost of fixed assets were submitted by the assessee in the original assessment proceeding as well as in the reassessment proceedings. Therefore, there is no occasion to add back ₹ 24,08,326/- as depreciation on account of exchange variation of ₹ 84,32,302/- capitalized in the cost of fixed assets that the third issue of disallowances of software development expenses we have seen that this issue has been decided in favour of the assessee by the Spl. Bench of ITAT Delhi in ITA No. 72/Del/2006 in the case of M/s Amway India Enterprises vs. DCIT that software development expenses are revenue in nature. The Hon ble Jurisdictional High Court vide its order dated 04/11/2011 in the case of CIT vs. Asahi India Safety Glass Ltd. (ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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