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2016 (7) TMI 256 - AT - Income TaxSoftware expenditure - revenue or capital - Held that:- It is mentioned in the bill itself that the business software customised expenditure is charged for providing services from April 1, 2007, to March 31, 2008. This bill itself clarifies that this expenditure is incurred for only the financial year 2007-08 and no defect has been pointed out in this bill by the Revenue and, we are, therefore, inclined to believe that the software expenditure is having enduring benefit of not more than a year and therefore has been rightly booked as revenue expenditure. Repair expenses of rotary machine - Held that:- From going through the records, we observe that factory expenditure account which totals to ₹ 4,51,408, a cash payment of ₹ 25,000 has been shown to be paid vide voucher No. 537 and in the details of entry itself there is mention that this amount of ₹ 25,000 is the balance amount of rotary machine which valued at ₹ 12,75,000 and after paying of ₹ 12,50,000 the balance amount has been paid in cash. In our view this entry makes the fact very clear that ₹ 25,000 was part of the total value of the rotary machine at ₹ 12,75,000 and further no supporting evidence was placed on record by the assessee to prove that there were two separate bills one for the cost of the machine of ₹ 12,50,000 and the other for expenditure incurred for rotary machine for ₹ 25,000 relating to repair, etc., and, therefore, in these circumstances, we are unable to accept the contention of the learned authorised representative and inclined to believe that ₹ 25,000 was part of capital expenditure of ₹ 12,75,000 incurred for purchase of rotary machine and the learned Assessing Officer has rightly disallowed the same and allowed depreciation on ₹ 25,000. - Decided against assessee
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