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2013 (6) TMI 379 - ITAT DELHIService charges paid on software development to DERPOL - CIT(A) deleted the addition - Held that:- Issue in question is squarely covered in favour of assessee as ITAT in the preceding year from January, 2006 to March, 2006 on the basis of same agreement had allowed the expenditure stating that as from the agreement and the nature of the services provided by M/s DERPOL Investment Ltd. it is not at all established that the assessee had acquired any asset of capital in nature. AO has failed to point out as to how and in what manner, the expenses incurred by the assessee for availing the services of M/s DERPOL can said to be of enduring in nature. Since no capital assets was acquired nor any benefit of enduring nature so as to treat the expenditure as of capital in nature has been acquired by the assessee and since assessee has availed the services of M/s DERPOL in the course of carrying on its business of software development and deployment and the payment is related to the services rendered. Thus the expenses claimed by the assessee are of revenue in nature - Against revenue. Confirmation of disallowance on account of legal and professional charges - Held that:- CIT(A) has elaborately dealt with the issue and AR did not bring any fresh material in support of the expenses claimed. Therefore, no infirmity in the order of CIT(A). Against assessee.
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