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2013 (2) TMI 305 - HC - Income TaxDeduction u/s 80HHE assessee had not taken into consideration the expenditure incurred in foreign currency when computing deduction under section 80HHE Held that:- It is well settled that expenses incurred in foreign exchange to provide technical services outside India cannot be included for the export turnover Certificate issued by the chartered accountant as required under section 80HHE(4) would clearly show that the amount that is received is towards providing technical services outside India, in connection with production and development of software and not in connection with export of software or its transmission to its place in India Expenditure incurred pertains to technical services outside India, the same has to be excluded from the turnover for the purpose of arriving at the deduction admissible under section 80HHE of the Act In favour of the Revenue. Membership fee of Club revenue or capital expenditure Held that:- As decided in assessee's own case [2013 (2) TMI 305 - Karnataka High Court ] wherein expenditure on membership of the club was treated as revenue expenditure Against the Revenue. Contribution made to traffic police - Held that:- It is well settled that in order to claim deduction under section 37 the expenditure should be wholly for the purpose of business of the assessee and it is well settled that it is the duty of the police to regulate the traffic and the amount spent towards regulation of traffic can at the most be considered as donation Further as decided in CIT v. Neelavathi [2010 (2) TMI 176 - KARNATAKA HIGH COURT] contribution made to traffic police would not qualify for deduction under section 37 of the Act In favour of revenue. Expenses incurred for repairs and maintenance of the leased premises - premises had been taken on lease for a period of six years - Held that:- As building required extensive repairs and renovation and the same has been done in connection with the business of the assessee to improve the ambience of the office and expenditure was revenue in nature Mere fact that it was taken on lease for six years would not itself render the expenditure capital in nature Repairs that are carried out to use the premises as the office, as there was strict competition in the business and the expenditure cannot at all be said to be capital expenditure - Against the Revenue
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