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2019 (7) TMI 1738 - AT - Income TaxNature of expenditure - expenditure as license fee payment to M/s. Remfry and Sagar Consultants Pvt. Ltd. (RSCPL) for use of goodwill of ‘Remfry & Sagar’ and to practice in this name - revenue or capital expenditure - HELD THAT:- We find that this issue is permeating from the earlier years and the Tribunal after noting the entire facts and rival contentions made by the parties as well as relevant provision of law has held that the license fee paid to M/s. RSCPL is allowable as Revenue expenditure - thus we hold that the said deduction claimed by the assesse on account of license fee paid to M/s. RSCPL is allowable as Revenue expenditure u/s.37. Consequently, ground no.1 of the Revenue is dismissed. Disallowance on account of TDS payable - case of the AO was that this was a part of expenditure and has been claimed as expenditure in P&L account and since assessee is following cash system of accounting, therefore, same cannot be allowed as it remain payable on 31st March, 2011 - HELD THAT:- Before us, learned counsel has submitted the details of challan of TDS deposited on 24.07.2011 and if the TDS deducted has been deposited within due date prescribed under the rules then credit of the same has to be allowed. Thus, this issue is decided in favour of the assessee.
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