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2012 (10) TMI 661 - AT - Income TaxRevenue expenditure or capital - capital work-in-progress - assessee explained such sum as expenses for R&D for software development - assessee submitted that it had incurred certain expenditure for development of software for getting committed orders - some of the orders were delayed, in the books pro rata expenses were shown as part of work-in-progress for having impressive accounting statements - As per the A.O., such expenditure brought an enduring benefit to the assessee – Held that:- Assessee chose to claim a sum as a revenue outgo in its computation statement - Claim of the assessee was that this was rent and electricity and having been incurred wholly for the purpose of business was allowable as revenue outgo and/or under Section 30 of the Act - treatment in the books of accounts is a pointer as to how the assessee itself treated the outgo for the purpose of its business - none of the authorities below considered the relevant Accounting Standards and nature of business of the assessee while deciding the issue - CIT(Appeals) fell in error in giving allowance to the assessee without verifying such aspects – matter remanded to AO
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