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2010 (2) TMI 869 - AT - Income TaxExpenditure on software acquisition - Revenue or capital - assessee incurred expenditure on purchase of software - Held that:- AO directed to examine the question whether expenditure on computer software is capital or revenue in view of the criteria laid down in the case of Amway India Enterprises after giving an opportunity of being heard to the assessee, matter remanded to AO. Disallowance of deduction claimed on account of employees contribution to Provident Fund - Held that:- assessee will be entitled for deduction on account of delayed payment of employees'/employers' contribution towards Provident fund where payments were made after due date prescribed under respective statute but before the due date of furnishing the return of income under section 139(1) of the Act. Since the payment has been made before the due date of filing of the return under section 139(1) of the Act, assessee will been entitled for deduction u/s 43B of the Act in respect of employee's contribution, CIT (A) was justified in deleting the addition Disallowance of claim on account of depreciation - depreciation on tube-well installed at the factory site - assessee not claimed depreciation on farm tube-well - assessee owns another tube-well in the factory building for the purpose of factory use. The water supplied by the tube-well is used in the factory - Held that:- use of tube-well in the factory is not for the purpose of agricultural land the income thereof is exempt from tax. Since the tube-well forms part of plant and machinery installed in the factory building and water is used for the purpose of factory, assessee is entitled for depreciation on tube-well. order of the ld. CIT (Appeals) set aside and AO directed to allow depreciation on tube-well installed in the factory premises, appeal filed by the assessee is partly allowed, for statistical purposes.
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