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2008 (7) TMI 600 - AT - Income TaxExpenditure on foreign travel - whether related to purchase of capital asset or business expenditure - held that:- The travelling expenditure by the assessee for the purpose of business therefore same are allowable expenditure. The revenue has failed to establish that the expenditure incurred by the assessee is for the purpose of assets, therefore, the Assessing Officer’s view is not acceptable. - Decided in favor of assessee. Capital expenditure or revenue expenditure - technical service charges paid to FBS Software towards software upgradation, modification and customization charges. - held that:- the facts of the case are required to examine in the light of the above decision of ITAT SB Delhi in Amway India Enterprises (2008 -TMI - 64346 - ITAT DELHI-C ). - Matter remanded back. Depreciation - whether POS terminals and Automated Teller Machine "ATM" come under ‘computer’ or come under 'plant and machinery' for the purpose of depreciation. - The Institute of Chartered Accountants of India in its study material PEE II Information Technology Paper VI has defined the term computer - held that:- POS terminals and ATMs are not treated to be as computer and therefore the lower authorities have rightly allowed depreciation at the rate of 25 per cent which is applicable to plant and machinery. The rate of 60 per cent which is applicable to computers is not applicable to POS terminals and ATMs. - Decided against the assessee.
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