Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 942 - AT - Income TaxDeduction in respect of R&D expenses - revenue v/s capital expenditure - Held that:- It is admitted that AO in this case has not verified the allowability of the expenditure. He has specifically asked the Ld. CIT(A) that the same will be done if directed by him. It is not a case that the Ld. CIT(A) has himself examined the nature of these expenses and examined the allowability of these expenses as to whether the same were incurred wholly or exclusively for the purpose of business. As a matter of fact that Ld. CIT(A) has not even mentioned about the quantum of R&D expenses in his appellate order. There is no mention about the examination about nature of expenses. In these circumstances, in our considered opinion, interest of justice will be served if the matter is remitted to the file of the AO. The AO is directed to examine the issue of allowabilty of R&D expenses, after giving the assessee proper opportunity of being heard.
|