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2023 (6) TMI 28 - AT - Income TaxDisallowance of deduction on investment written off - capital loss or revenue loss - HELD THAT:- We find identical issue had come up before the Tribunal in assessee’s own case for the A.Y 2009-10 restored the issue to the file of the AO. We deem it proper to restore the issue to the file of the AO with a direction to decide the issue for the present year in the light of the direction of the Tribunal for A.Y 2009-10 at the earliest. While doing so, AO shall keep in mind the various decisions relied on by assessee including that of the in the case of Patnaik & Co. [1986 (7) TMI 6 - SUPREME COURT] AO shall give due opportunity of being heard to the assessee and decide the issue as per fact and law. First issue raised by the assessee in the ground of appeal is treated as allowed for statistical purposes. Disallowance of purchase of software - revenue or capital expenditure - assessee submitted that the software purchases debited to P&L A/c pertain to license fee for the year only and hence cannot be disallowed treating it as a capital expenditure - AO did not accept the contention of the assessee on the ground that the assessee had not produced the bills/invoices for the items it pertains - HELD THAT:- Since the assessee in the instant case has filed all the relevant details along with supporting bills/invoices, during the assessment proceedings itself, therefore, respectfully following the decision of Danfos Industries (P) Ltd (2021 (9) TMI 1151 - MADRAS HIGH COURT), we hold that the CIT (A) NFAC is not justified in confirming the disallowance treating the software expenditure as capital in nature. The order of the CIT (A) NFAC is set aside and the AO is directed to allow the expenditure debited in the P&L A/c under the head software purchases. Decided in favour of assessee.
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