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2011 (4) TMI 875 - AT - Income TaxLife membership fees - Capital Vs. Revenue expenditure - Held that:- It is not clear from the record as to whether the assessee had acquired corporate membership of the club to be used by the employees or the membership had been granted in the name of individual employees - Since the facts are not clear, appeal is allowed by way of remand Printing research reports abroad - Disallowance u/s 40(a)(i) - Held that:- It has been submitted that expenditure was only on printing of reports and not on research on broking services. As these parties had no permanent establishment in India and therefore payments in their hands were not taxable in India - Decided in the favour of assessee. Acquisition of software - Held that:- The same issue has been examined in details by the special bench of the tribunal in case of Amway India Enterprises (2008 (2) TMI 454 - ITAT DELHI-C) in which special bench after considering several judgments of the High Court and Supreme Court has laid down certain guidelines in understanding the true nature of expenditure on acquisition of software. The decision of the special bench was not available at the time of passing of the order by the authorities below - set aside the order of CIT(A) and restore the issue to the file of AO for passing a fresh order after necessary examination in the light of decision of the special bench. Legal and professional fees - Held that:- The expenditure had been incurred to explore options for providing value added services to the customers through the internet incurred for more efficient conduct of the existing business, thus to be held as revenue in nature Disallowance u/s 14A - Held that:- As assessee in this case has received dividend only from one company some indirect expenses on collection of dividend and accounting of income etc have to be incurred even though this may be only nominal - Decided against the assessee Contribution of employees provident fund - deduction under section 36(1)(va) disallowed - Held that:- CIT(A) has however held that the payments had been made within due dates but he has not given details of actual date of payment, thus unable to arrive at any conclusion. The matter requires verification.
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