Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 658 - AT - Income TaxSoftware expenses - CIT(A) deleted the addition - Held that:- As decided in CIT Vs. O.K. Play India Ltd [2011 (2) TMI 454 - PUNJAB AND HARYANA HIGH COURT] as relying on CIT v. Varinder Agro chemicals Ltd. [2008 (10) TMI 100 - PUNJAB AND HARYANA HIGH COURT] Since technology is fast changing and day-by-day systems are being developed in a new way, software may be needed like raw material - view taken by the Tribunal that computer software expenses were revenue in nature, is correct. Also see Alembic Chemical Works Co. Ltd. V. CIT [1989 (3) TMI 5 - SUPREME Court]. In favour of assessee. Categorization of items purchased - Printers and routers - electrical equipments or energy savings devices - CIT(A) deleted the addition - Held that:- As decided in DCIT Vs. Datacraft India Ltd. (2010 (7) TMI 642 - ITAT, MUMBAI) it was held that the "router" and "switches" can be classified as computer hardware when they are used along with computer and when there functions are integrated with a computer. It was concluded that in such a situation the routers and switches are to be included in back of computers for the purposes of demanding the rate of depreciation. Also see ITO Vs. Samiran Majumdar (2005 (8) TMI 293 - ITAT CALCUTTA-B) wherein the issue was whether printers and scanners being integral part of computer system can be treated as computer for the purpose of allowing higher rate of appreciation as answered in affirmative. In favour of assessee. Business development expenses - CIT(A) deleted the disallowness - Held that:- Undoubtedly, the assessee co-operative bank has distributed gifts, mementos, school bags, etc to the children of its members such distribution of gifts was allowable as business expenditure was an identical issue decided in ACIT Vs. The Gujarat State Co-operative Bank Ltd. [2013 (6) TMI 438 - ITAT AHMEDABAD] wherein the order of Karajan Co-operative Cotton Sales (1992 (1) TMI 39 - GUJARAT High Court) followed and expenditure was allowed. In favour of assessee.
|