Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 399 - AT - Income TaxNature of expenditure - expenditure incurred under the head 'technology services and research development fee' paid - Revenue or capital expenditure - HELD THAT:- In this case, expenditure incurred by the assessee towards payment made to group companies for technology and research & development fees is supported by an agreement between the parties, which clearly lays down nature of services and technology availed by the assessee. The assessee had also made payment by cheque after deducting applicable TDS as per law - there is no doubt about genuineness of payment and rendering of services by service provider - expenditure incurred by the assessee towards payment made to M/s. IFMR Rural Financial Services Pvt. Ltd. for availing services and using their trademark, including software 'PERDIX' etc. is in the nature of revenue expenditure, which was incurred wholly and exclusively for the purpose of business of the assessee. Thus expenditure is not capital in nature, because the assessee has not acquired any technical know-how or asset, but what was received from service provider was technology support services and professional services for managing day-to-day business affairs of the assessee. Therefore, said expenditure cannot be considered as capital in nature - Decided against revenue
|