Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 784 - ITAT, MUMBAITraining and selection fees expenses - Allocation of capital expenditure - Whether the Tribunal was justified in law in including the original cost of the plant and machinery any part of the expenses incurred for (i) staff training (ii) insurance and (iii) power and fuel in ascertaining the actual cost for the purpose of allowance of development rebate and deprecation allowance - As per the Hon'ble Bombay High Court in the case of Belapur Co ltd has held that expenditure incurred on foreign tour undertaken for the purchase of a capital assets as also for study of diffuser working has to be capitalized for the purpose of allowing deprecation and development rebate thereon - The Hon'ble High Court has held that the Tribunal was right in upholding the direction of the AAC to capitalise the expenditure on the foreign tours for the purpose of depreciation and development rebate and to allow the same on such figure as the ITO arrived at. Assessee submission that since the other expenditure incurred by the assessee has been capitalised in the ratio of the cost of the assets; therefore, the same ratio may be applied for capitalizing the training expenses - According to him, in the instant case, the training expenditure relates to plant and machinery only, therefore, the same should be allocated to plant and machinery. The expenditure relatable to the installation of the machinery can at best be construed as a part of the cost of the plant and machinery which can be capitalized - Find from the order of the CIT(A) that he has given a finding that the assessee has not produced the full details regarding the training expenses paid to the foreign consultant. The submission of the ld counsel for the assessee that since the Assessing Officer has not asked for those details, therefore, the same were not given, in our opinion, does not find force in it. Although, the assessee in the paper book has given the invoice wise details of payment including TDS, it is also not clear as to whether the TDS so deducted has been properly deposited to the credit of the Central Government account in terms of provisions of sec. 40(a) of the I T Act - Accordingly, set aside the order of the CIT(A) and restore the matter to the file of the Assessing Officer to decide the issue afresh and in accordance with law after giving due opportunity of being heard to the assessee - The ground raised by the assessee is accordingly allowed for statistical purpose.
|