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2014 (7) TMI 1280 - AT - Income TaxDisallowance of expenditure incurred by the assessee towards making of enrollment cards under Rashtriya Swasthya Bima Yojana (RSBY Scheme) - deferred revenue expenditure - assessee will get enduring benefit out of this investment for years together the AO allowed only 1/10th of the expenditure by amortising the expenses and disallowed the balance - Held that:- As against incurring of approximately ₹ 77/- towards cost of each smart card the assessee received service charge of ₹ 97/- per smart card from the insurer. Further, the finding given by the Ld.CIT(A) that the issue of smart card per se is completely independent line of business for the assessee company from the main business of settling the beneficiaries claimed on behalf of the insurance companies under the RSBY scheme could not be controverted by the Ld. Departmental Representative. Departmental Representative also could not controvert the finding given by the CIT(A) that the amount received during the year has been shown as income and the assessee has claimed the corresponding expenditure incurred on the printing and issue of smart cards. No infirmity in detailed reasoning given by the CIT(A). Merely because the amount appears to be huge cannot be a ground to disallow the same on the ground of enduring benefit to the assessee when the corresponding revenue earned has been considered as income of the impugned year. - Decided against revenue
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