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2015 (10) TMI 994 - AT - Income TaxApplication computer software - revenue v/s capital expenditure - Held that:- As could be seen from the observation of the High Court in the case of CIT v. Southern Roadways Ltd. [2006 (10) TMI 82 - MADRAS HIGH COURT] that the expenditure incurred on upgradation of software is revenue expenditure. Respectfully following the said decision, we allow the ground of appeal of the assessee on this issue - Decided in favour of assessee. Disallowance of loss of transaction of foreign currency loan - Held that:- The Assessing Officer though stated in the assessment order that if borrowing is for capital asset, the exchange loss already suffered would require to be capitalised in the context of the present law after the substitution of section 43A with effect from the assessment year 2003-04, he has not dealt with the issue on those lines. The Assessing Officer also did not examine as to whether the assessee has repaid the loan, etc. or it is still outstanding. In the circumstances, we are of the view that this issue has to be examined afresh in accordance with law with reference to the provisions of section 43A of the Act after ascertaining the facts from the assessee as to whether the entire loan was repaid or outstanding or partly repaid or outstanding, as the submission of the assessee was that loan was repaid and the losses incurred by the assessee on foreign exchange fluctuation of FCNR, the loan is not a contingent liability. Therefore, in the light of the submissions of the assessee and also since the lower authorities have not examined this issue, we remit this issue back to the Assessing Officer with a direction to apply provisions of section 43A of Act and decide this issue in accordance with law after providing adequate opportunity to the assessee. - Decided in favour of assessee for statistical purposes. Exclude exchange fluctuation on sales both from export turnover and total turnover for the purpose of computing deduction under section 10AA - Held that:- As the Commissioner of Income-tax (Appeals) by following the decision of the Special Bench in the case of ITO v. Sak Soft Ltd. [2009 (3) TMI 243 - ITAT MADRAS-D ] and directed to exclude foreign exchange fluctuation from both export turnover and total turnover for the purpose of computing deduction under section 10AA of the Act, we do not find any infirmity in the impugned order and uphold the same.- Decided against revenue.
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