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2016 (11) TMI 254 - AT - Income TaxAllowability of charges paid to Software Technology Park of India, Noida - prior period expenditure - applicability of sec 35D - Held that:- The annual charges of STPI were ₹ 4 lacs which were claimed in four equal quarterly installments. There was some dispute of ₹ 3 Lacs charges of earlier year which were also settled/paid in current year. ₹ 1 lac paid on 13.07.2002, paid on 14.08.2002 and payable as on 31.03.2003 is the charges for the FY 2002-03 i.e. previous year in question hence expenses for current year only not registration or prior period expenses. ₹ 1 lac paid on 15.04.2002, ₹ 1 lac on 15.05.2002 and ₹ 1 lac paid on 25.07.2002 are for the FY 2001- 02. These were pending and not expended in earlier years as there was some dispute between assessee & STPI, which was resolved in current year and payment and expenses booked. Since it was settled in current year and crystallized in current year, it is expended in current year by the assessee. The said payments are in cheque and there is no necessity for further verification of the same. The service charges charged by STPI are routine in nature & every software exporter has to pay to STPI. It does not attract provisions of Section 35D of the Act. Bogus purchase of certain software - Held that:- The purchase of the software from the Gigaware Software Solutions for ₹ 3,35,625/-, the Ld. AR submitted its bank statements to that extent before the Assessing Officer. Thus the finding recorded by the CIT(A) that the bank account was not produced is incorrect. It is noted that the assessee has produced the relevant documents at the time of the Assessment proceedings. Thus the finding given by the CIT(A) as well as by the Assessing Officer that the relevant documents were not produced is incorrect.
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