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2019 (4) TMI 681 - AT - Income TaxAddition u/s 40A(2)(b) - related party transaction - AO alleged that rates is excessive and unreasonable as Linux was free and open-source software - HELD THAT:- Upon perusal, the undisputed position that emerges is the fact that the assessee has purchased the stated software under 6 bills for resale. The part of these software has been sold by the assessee during impugned AY and the balance software have been reflected as Closing Stock under the head electronics which is evident from closing stock details. The perusal of quantitative details reveals that the assessee is having closing stock of these items for ₹ 84.02 Lacs. Further, the assessee has sold the software in subsequent years which is evident from sales invoices placed on record. So far as the observations that the Linux was free open source software, is concerned, it has been submitted that the said software has been tailor made by the assessee as per the user’s requirement and the said fact remain uncontroverted. Another noteworthy point is that fact that nothing has been placed on record by AO to support the finding that the price paid by the assessee was excessive or unreasonable, in any manner, having regards to the market price of these goods. Under these circumstances, no infirmity could be found in the impugned order. Appeal stands dismissed.
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