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2017 (9) TMI 1355 - DELHI HIGH COURTAllowability of high expenditure as business is sold - ITAT deleted the addition - Held that:- This Court is of the opinion that since the findings of the lower appellate authorities, especially the CIT(A) and the ITAT are concurrent on the facts, it cannot be said that any substantial question of law arises. Even otherwise, the AO’s order presumed that the levels of expenditure necessarily had to drop, since the internet based business had been sold by the assessee. Such a conclusion could not have been arrived at unless the AO had considered all other factors including the nature of commercial activities that subsisted without such activity. AO made disallowance of ₹ 16.12 crore simply by means of a mathematical exercise carried out by him. If he found the expenditure incurred by the assessee to be on higher side, it was incumbent upon him to specifically point out as to which expenses were not incurred for the purposes of business. - Decided against revenue Treatment given to the website expenditure - revenue or capital expenditure - nature of expenditure - Held that:- in view of the judgment of the Hon’ble jurisdictional High Court in CIT vs. India Visit.com (P) Ltd. (2008 (9) TMI 8 - DELHI HIGH COURT) in which it has been held that the expenditure on development of website is a revenue expenditure. Similar view has been taken by the Tribunal in the assessee’s own case for the immediately preceding year.- Decided against revenue
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