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2021 (4) TMI 457 - AT - Income TaxRevision u/s 263 - Allowability of claim of bad debts - HELD THAT:- It is an admitted fact that the same has been claimed in respect of investment made in M/s Oro Trade Network India Ltd which has been written off in the books of accounts and not in respect of any regular debtors in respect of which the revenues have been booked on cash basis. Where the said claim has been made and allowed by the Assessing officer during the course of assessment proceedings, we donot find that the order so passed by the AO can be held as erroneous in so far as prejudicial to the interest of Revenue. Software updation charges are recurring charges paid on regular basis for updation of software from time to time and are thus for usage of the software and cannot be held as providing any enduring benefit to the assessee or for that matter, has resulted in creation of any ownership rights over such software and are more in the nature of usage/licence fees for usage of the software and has thus rightly been claimed and allowed as revenue expenditure - it is an admitted position that the assessee has purchased the vehicle only on 15.03.2015 and he has not claimed any interest on auto loan and vehicle maintenance expenses for the impugned assessment year and therefore, the question of disallowance of the same doesn’t arise. In light of the aforesaid discussions, we are of the considered view that there is no basis to hold that the order so passed by the AO is based on mistaken view of law/erroneous application of the provisions of the Act and is erroneous in so far as prejudicial to the interest of the Revenue. The order so passed by the ld Pr CIT is thus set-aside and the order of the AO is restored.
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