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2014 (7) TMI 1099 - AT - Income TaxDisallowance of web and portal charges - Held that:- Expenditure incurred on the development of web and portal charges are definitely revenue expenditure - The hon'ble Delhi High Court has considered the decision of the hon'ble Supreme Court in the case of Alembic Chemical Works Co.Ltd. v. CIT [1989 (3) TMI 5 - SUPREME Court] wherein the expenditure on development of website was held to be revenue in nature. Therefore, this issue is directly covered by the decision of the hon'ble Delhi High Court in the case of Indian Visit.com (P.) Ltd. (2008 (9) TMI 8 - DELHI HIGH COURT). Deletion of the addition made on account of not allowing depreciation - Assessing Officer disallowed the depreciation by holding that no business was carried out. The Commissioner of Income-tax (Appeals) allowed the appeal of the assessee by holding that the assessee was carrying on the business. Therefore, there is no question of disallowance of depreciation. After hearing both sides, we find that the learned Commissioner of Income-tax (Appeals) has rightly allowed the claim of the assessee. Deletion of ad hoc disallowance at the rate of 10 per cent. of the expenses - No specific expenditure was held to be not for business purpose. Therefore, in our considered view, the ad hoc disallowance was rightly deleted by the Commissioner of Income-tax (Appeals). The expenditure incurred on the development of web and portal charges itself shows that the assessee was carrying on the business. - Decided against Revenue.
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