Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 190 - AT - Income TaxRepairs & maintenance expenses including purchase of computer accessories - revenue or capital expenditure - Held that:- Amount paid for purchase of switch 16 port used in plugging, batteries, UPS, flexible pipes, 44 ports to enable use of computer are in fact computer accessories & are of capital nature being items of enduring nature and therefore are held to be of capital nature eligible for higher depreciation @ 60%. However, amount paid for granite polishing, table polishing and change of wall panel are building repaid expenses, and thus in the nature of current repairs eligible as revenue expenditure. Also, amount paid as license fees for system administration training expenses is clearly revenue expenditure - Decided partly in favor of assessee Interest on service tax - dis-allowance on ground of it being penal in nature - Held that:- Interest on service tax is compensatory in nature and not in the nature of penalty and dis-allowance cannot be made u/s 37(1) - Decided in favor of assessee. Dis-allowance u/s 14A - assessee contended that no expense was incurred for earning of exempt income and all investments were made from own resources of the assessee and investments related to earlier years and no interest cost was incurred for earning of exempt income - Held that:- Sub section (2) of section 14A deals with the cases where assessee specifies a positive amount of expenditure and sub section (3) applies to cases where the assessee asserts that no expenditure had been incurred in relation to exempt income. AO in the present case has not made such findings and he only proceeded on the basis of assumptions that some expenditure must have been incurred for earning of exempt income. Matter restored back
|