Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (2) TMI 744 - AT - Income TaxDeduction / exemption u/s 10A - interest on bank deposits and other advances - Business income or other sources - held that:- As rightly brought out by the AO in his impugned order, the amounts for both the assessment years under dispute representing interest incomes which are assessed as income from 'other sources' and were therefore not part of profits and gains derived from the industrial undertakings qualifying for exemption u/s 10-A of the Act. - Order of AO maintained - Decided against the assessee. Expenditure on software - capital expenditure or revenue expenditure - AO took a view that the software resulted in enduring benefit to the company and also the word 'enduring' was not synonymous with the words 'everlasting' or 'perpetual'. - AO treated such expenditure as capital in nature - Held that:- In the case of Amway India Enterprises vs. DCIT (2008 -TMI - 64346 - ITAT DELHI), the Special Bench has considered the allowability of expenditure incurred on acquisition of software. After elaborately considering the precedents on the subject, the Special Bench of the Tribunal has laid down various tests to determine whether the expenditure involved is capital or revenue. - Matter remanded back to AO to decide the issue accordingly.
|