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2011 (5) TMI 367 - AT - Income TaxSoftware and product development expenses - capital or revenue expenditure - the issue has to go back to the file of the Assessing Officer for fresh adjudication in the light of the decision of Special Bench of ITAT in the case of Amway India Enterprises v. Dy. CIT (2008 -TMI - 64346 - ITAT DELHI-C). Non-compete fee -the Tribunal in assessee's own case in the preceding assessment year has restored the matter to the file of the CIT(A) for passing a speaking order. Since the CIT(A) has not given any finding on the claim of the assessee that non-compete fee paid by the assessee to M/s. Footforward Communications Pvt. Ltd. was a revenue expenditure and since during the impugned assessment year, the assessee has not at all claimed any expenditure in the P&L account, and, since the lower authorities have not decided the issue properly, therefore, the matter should go back to the Assessing Officer or CIT(A) as the Bench decides, for fresh adjudication -Admittedly, the assessee has not claimed any expenditure on account of non-compete fee during the year since amortisation of miscellaneous expenditure of Rs. 1,87,15,371 claimed in the P&L account has been disallowed in the computation of total income. Tax deducted at source - Under section 40(a)(i)- Since the assessee has not filed the requisite details before the Assessing Officer, the Assessing Officer disallowed the amount which has been upheld by the CIT(A). She submitted that the additional evidences should not be admitted at this stage since the assessee has not given any valid justification as to why those details could not be filed before the Assessing Officer. Prior Period Expenses - According to the AO, the legal position is that income pertaining to earlier years is taxable on receipt basis under section 41 of the Act but expenses pertaining to earlier year are not allowable as they are not pertaining to the year under consideration. - Held that:- Undoubtedly, the assessee in the instant case has failed to justify the allowability of claim of prior period expenses of Rs. 64,60,337 during the year before the Assessing Officer and CIT(A) by showing that the expenditure has crystallised during the year. - Decided against the assessee.
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