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2019 (7) TMI 371 - HC - Income TaxNature of expenditure - expenses incurred by the assessee for the purchase of software - Revenue or capital expenditure - HELD THAT:- Tribunal was fully justified in treating the expenditure as revenue expenditure, as there is no enduring benefit accruing to the assessee. Admittedly, every software has a shelf life and this has been clearly brought out in the order passed by the Tribunal. Therefore, we affirm the common order passed by the Tribunal and the substantial question of law with regard to the expenses incurred by the assessee for the purchase of software is answered against the Revenue. Addition u/s 14A - whether the provisions of Rule 8D of the Income Tax Rules cannot be invoked for computing the expenditure towards earning exempt income for the purpose of disallowance under Section 14A of the Act and as to whether the Tribunal was right in holding that only 2% of the exempt income earned is to be treated as an expenditure for disallowance under Section 14A ? - HELD THAT:- The Revenue cannot dispute that this issue has been decided against the Revenue in several cases and admittedly, the assessments in question are prior to 2008-09. Therefore, these questions have to be necessarily decided against the Revenue and accordingly, they are answered against the Revenue. Claim for additional depreciation - whether the Tribunal was right in holding that additional depreciation can be allowed in an assessment year other than the assessment year, in which, the new plant and machinery were acquired and installed - HELD THAT:- Revenue does not dispute the position that those issues were considered and decided against the Revenue in the decision in the case of CIT Vs. M/s.Hi Tech Arai Limited [2009 (9) TMI 60 - MADRAS HIGH COURT] . Applying the said decision, the other substantial questions of law involved for the assessment year 2008-09 are decided against the Revenue.
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