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2018 (8) TMI 1056 - ITAT KOLKATAAdditions u/s 40(a)(i) - TDS liability u/s 195 on Microsoft license fee payable to Organon NV (AE) - Royalty or fee for technical services - Held that:- Tribunal has gone extensively into the question raised before the Tribunal - Decision of ITAT sustained. - Decided in favor of assessee. Nature of expenditure - various expenses for initiation and setting up of the project - setting up of pharmaceutical factory on Kona land in West Bengal for expansion of its existing business - Held that:- the expenses incurred by the assessee were for the expansion of the already existing unit and it was incidental to the assessee’s business and the expenses were capitalized under work-inprogress - the assessee abandoned the project being non-viable in the year under consideration. The Ld. CIT(A) is right in finding that the expenditure is incidental to the business carried out by the assessee and, therefore, the said expenditure is nothing but loss incidental to the assessee’s business. It is well settled that profits and gains which are liable to be taxed u/s. 28 of the Act are what are understood to be such according to ordinary commercial principle. - Claim of deduction as business expenditure/ loss allowed. - Decided in favor assessee.
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