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2018 (10) TMI 989 - HC - Income TaxNature of Copyright expense - revenue or capital - Nature of expenses - Held that:- Identical questions arose in the appeal filed by the revenue in the case of the assessee itself for the assessment year 2009-10 i.e. Principal Commissioner of Income Tax-2, Chandigarh vs. M/s Mobisoft Tele Solutions P. Limited [2018 (2) TMI 1654 - PUNJAB AND HARYANA HIGH COURT] where while dismissing the appeal this Court answered the questions against the revenue. It was held that the Tribunal on appreciating the agreement rightly came to the conclusion that only a licence to use the copyright was granted to the assessee company. The assessee company had not acquired the copyright. In such circumstances, licence fee paid was a revenue expenditure. Addition u/s 40(a)(ia) - second proviso to Section 40(a)(ia) of the Act applicability - Held that:- The Tribunal has dealt with the factual aspect of the matter and it has been specifically recorded that the assessee has been able to prove that the recipients of the interest income have included the income in their return and paid taxes thereon. The said findings have not been shown to be erroneous in any manner. The said expenses were allowable in view of the provisions of Section 40(a)(ia) r.w.s. 201(1) of the Act. In such circumstances, since the Assessing Officer has herself admitted that the addition made was unwarranted, the addition no longer survives vis-a-vis assessment order and there is no reason for the Revenue to have any grievance on the issue. - Decided against revenue
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