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2014 (2) TMI 173 - AT - Income TaxDeletion made of capitalization of capital expenditure u/s 37(1) of the Act Software expenses Held that:- The decision in CIT - I Versus ACL Wireless Ltd. [2013 (12) TMI 1160 - DELHI HIGH COURT] followed - There has to be recurring expenditure which has to be incurred in the said business to ensure sale of the software,for removal of obstructions, restrictions or disabilities on the sale - The determination should be based upon consideration of facts and circumstances and by applying principles of commercial trading and business expediency Decided against Revenue. Deletion made of capitalization of license fee Fees paid as Royalty Held that:- The decision in Income Tax Officer Versus M/s ACL Wireless Wireless Limited [2014 (1) TMI 1305 - ITAT DELHI] followed - the expenditure in question was incurred as a matter of routine, for the business and commercial expediency of the assessees business Decided against Revenue. Deletion made u/s 40(a)(ia) of the Act TDS not deducted Held that:- The assessee claimed that he did deduct the tax at source and deposited the same with the Government of India before the due date for filing of the return - the claim of the assessee needs to be factually examined - order set aside and the matter remitted back to the AO - Decided in favour of Revenue. Addition made for Non-deduction of TDS Application of Section 9 of the Act - Held that:- The decision in CIT Vs. Angelique International Ltd. - [2013 (10) TMI 17 - DELHI HIGH COURT] followed - payments in the form of a commission or discount to the foreign party were not chargeable to tax in India under section 9(1)(vii) of the Act - in the relevant accounting year tax did not have to be deducted - The deletion of disallowance under section 40(a)(i) was justified Decided against Revenue.
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