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2021 (1) TMI 71 - AT - Income TaxAllowability of product development expenses - as per AO even though said development expenditure was capitalised in books, the same was claimed as admissible deduction while computation of income - Assessee submitted by assessee that, expenditure on product development is revenue expenditure. Alternatively, assessee also contended that, even if the expenditure is otherwise treated as capital in nature, assessee is still eligible to claim in terms of section 35(1)(iv) because, these expenditures are incurred by assessee on scientific research and related to business, within the meaning of section 43(4) - HELD THAT:- We note that facts and issue considered by this Tribunal in assessment year 2005-06 . [2016 (6) TMI 1407 - ITAT BANGALORE] are same with the year under consideration. Therefore, respectfully following the view taken by this Tribunal in assessment year 2005-06 in assessee's own case, we remand this issue to Ld. CIT(A). Ld. CIT(A) is directed verify whether, assessee acquires any copyright/ownership in respect of products sold developed. Ld. CIT(A) is directed to decide the issue based on documents/evidences filed by assessee in light of decision in case of Talisma Corporation Pvt. Ltd. [2013 (12) TMI 1419 - KARNATAKA HIGH COURT]. Grounds raised by revenue stands allowed for statistical purposes.
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