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2012 (5) TMI 662 - ITAT CHENNAIAllowable software expenses - Held that:- It is clear that the assessee has spent the amounts for running its software system and not for acquiring any new system. Consumables and others were purchased for servicing the existing net work. This is the same which goes with the servicing as well. Another item is internet charges and small expenditure expended on training. The major amount is spent for IT help desk. It is to be seen that none of these expenses was incurred for acquiring any new system or facility of enduring nature. By the nature of the expenditure itself, it is clear on the face of the records that the expenses incurred were in the nature of revenue expenditure. Therefore, we find that the AO has rightly allowed the claim of the assessee. As such, the finding of the Commissioner, is untenable. Accordingly, the revision order is set aside. - Assessee is allowed.
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