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2012 (10) TMI 435 - ITAT PUNEDisallowance of Foreign Travelling expenses – Whether expense on which FBT has been paid are allowed, irrespective of its nature either personal or official - AO argued that assessee failed to satisfy that such expenditure was incurred wholly and exclusively for the purpose of business – Company had paid FBT on the aforesaid expenses – Held that:- As the CBDT explaining the provisions regarding the FBT makes it clear that FBT is levied on the expenses incurred by the employer irrespective of whether the same are incurred for official or personal purposes. Once FBT is levied on such expenses it follows that the same are treated as fringe benefits treated by the assessee as employer to its employees and the same have to be properly allowed as expenses incurred wholly and exclusively for the purpose of business. Following the decision in case of Hansraj Mathuradas (2012 (10) TMI 300 - ITAT, MUMBAI) direct the AO to delete the disallowance. Issue decides in favour of assessee Expenditure on computer software – Capital or revenue expenditure - Assessee contended that expense has been incurred only on licence to use the software and that it was mere upgradation of the software – Held that:- Expenditure on account of software does not form part of the profit making apparatus of the assessee and the same is to enable the management to conduct the assessee’s business more efficiently or more profitably and following the decision in case of Raychem RPG Ltd. (2011 (7) TMI 953 - BOMBAY HIGH COURT) direct the AO to allow the software expenditure as Revenue in nature. Issue decides in favour of assessee Disallowance u/s 40(a)(ia) – Non deduction of TDS – Assessee has not deducted TDS on payment of lease rent – Held that: As the assessee has paid entire lease rent on 20-05-2005 could not be controverted revenue. Since no amount of the lease rent is payable as on 31-03-2006, therefore, in view of the decision in case of Merilyn Shipping and Transport (2012 (4) TMI 290 - ITAT VISAKHAPATNAM), no disallowance u/s. 40(a)(ia) can be made. Issue decides in favour of assessee
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