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2016 (4) TMI 1319 - AT - Income TaxDisallowance made on account of excise duty - Held that:- As decided in assessee’s own case for Asst Year 2006-07 CIT(A) has not erred and justified in deleting the disallowances made on account of excise duty Disallowance made on account of shifting expenses - Held that:- We find that the assessee has not constructed or set up any new factory in replacement of an existing one. It is a case where certain machineries have been shifted from an existing factory to another existing factory when the former had been closed down. In order to achieve a synergy of production line, certain assets were dismantled and transferred to an existing plant. Therefore the shifting had not been done to increase the profit earning capacity of the assessee or an enduring benefit of the asset as such - such expenditure cannot be treated as capital expenditure and in these circumstances, the ld.CIT(A) has rightly deleted the addition Disallowance made on account of software expenses - Held that:- As decided for Asst Years 2003-04 & 2004-05 which had relied on the principle laid down by the by the Special Bench of Delhi Tribunal in the case of Amway India Enterprises [2008 (2) TMI 454 - ITAT DELHI-C] held the use of any ERP package in the case of manufacturer like the assesese-Company is generally for coordinating and rationalizing its functions and business process in order to ensure that the business is carried on more efficiently and effectively and by applying the functional test, the expenditure incurred on ERP package, in our opinion, cannot be treated as capital expenditure as it does not result in creation of any new asset or advantage of enduring nature in the capital field. We, therefore, direct the Assessing Officer to allow the deduction claimed by the assessee on account of expenditure incurred on upgradation of ERP and implementation thereof treating the same as revenue in nature Disallowance made on account of capital work in progress - Held that:- We hold that the disallowance of interest has been made by the Learned AO merely based on surmise and conjecture. In view of the aforesaid facts and circumstances, we find no infirmity in the order of the Learned CIT -A in deleting addition - Revenue appeal dismissed.
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