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2021 (8) TMI 457 - AT - Income TaxNature of expenditure - Expenditure incurred on Research & Development - revenue or capital expenditure - CIT(A) upheld the action of the AO holding that the assessee did not file any supportive details to verify the claim of expenditure and, therefore, the disallowance was sustained by him - HELD THAT:- Although full details were available before the AO, however, the AO was of the view that the expenses have the nature of creating enduring benefit and, therefore, it squarely falls under capital in nature. CIT(A), without going through the various details filed before the AO had dismissed the appeal filed by the assessee on the ground that the assessee failed to file the supportive details to verify the claim of expenditure. In other words, he has not gone through the details filed before him. Considering all we deem it proper to restore the issue to the file of the CIT(A) with a direction to verify the details already on record and decide the issue as per fact and law by passing a speaking order on the issue of capital or Revenue nature of the expenses. While doing so, he shall give due opportunity of being heard to the assessee. I hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
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