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2015 (1) TMI 474 - GUJARAT HIGH COURTFees paid to carry out due diligence for laying pipeline for supply of gas - revenue v/s capital expenditure - Held that:- The project was for expansion of laying down the pipeline for supply of gas which is regular business of the assessee and the expansion of the business by laying down pipe line was one of the purpose for which the feasibility report was to be prepared and the expenses were incurred. Thus the Tribunal cannot be said to have committed any error treating the expenses as business expenses or revenue expanses. Expenses claimed for purchase of Software - revenue v/s capital expenditure - Held that:- The Tribunal correctly found that the projects of software programmes could be said as revenue expenditure. Be it noted that the licence of software programmes was not for resale of such software or for further sale of software but was for the use of software in running day to day business of the assessee. Estimated profit on WIP - Tribunal delete the addition - Held that:- Tribunal correctly concluded that as the assessee has regularly offered the tax, there is no reason to separately consider the work in progress and the expenses incurred thereto for different method for the purpose of assessment of tax. - Decided against the revenue.
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