TMI Blog2016 (4) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... documents have now been retrieved and the same go to the root of the case, it has been pleaded that the same be admitted as additional evidence in support of the pleadings of the assessee. The Ld. A.R. in this respect has further relied upon an affidavit of one Mr. Sushil M. Waghmare, Director of the assessee company, wherein, the above facts have been explained and it has been submitted that the above documents be taken into consideration for just and proper decision of the case.We have gone through the application, affidavit and the relevant documents. We find that the relevant documents go to the root of the case and are very much necessary to be looked into for just and proper decision of the case. We, therefore, allow the application of the assessee for additional evidence and direct the AO to admit the documents relied upon and sought to be produced by the assessee and after considering the said documents/evidence, decide the issue afresh in accordance with law. This issue is accordingly restored to the file of the AO. - Decided in favour of assessee by way of remand Late deposit of Employees’ Contribution to PF - addition u/s 43B - Held that:- This issue is covered in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) erred in upholding the action of the A,O. in treating loan of 1,25,01,689/- taxable u/s. 68 of the income Tax Act, 1961 ( the Act ) and further enhancing the income to ₹ 1,61,15,409/- on alleged ground that the same is unexplained credit within the meaning of section 68 of the Act. 2. The Appellant therefore prays that the said addition be deleted. GROUND III: The Appellant craves leaves to add to, alter and / or amend the above grounds of appeal. Ground No.1 2. Vide ground No.1, the assessee has agitated the action of the Ld. CIT(A) in confirming the disallowance of a sum of ₹ 17 lakhs holding the same as a capital expenditure as against the claim of the assessee that the same being of revenue in nature. During the year under consideration, the assessee incurred various expenses for software development and maintenance amounting to ₹ 44,34,703/-. The Assessing Officer (hereinafter referred to as the AO) disallowed the said expenditure treating the same as capital in nature; however, he allowed the deprecation on the same. Being aggrieved, the assessee filed appeal before the Ld. CIT (A). 3. The Ld. CIT(A) in the impugned order ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry past pace with the growing requirement in the day to day business. Most of the software become obsolete in short span and new and upgraded versions are required for better functioning and that any expenditure on such an up-gradation or buying of software for facilitation and efficient working of operations through computers in day to day business management is to be treated as revenue in nature until and unless it is established that the software installed has a very long lasting life and enduring benefit on a capital asset. The relevant observations made by the Tribunal in para 12 of the said decision, for the sake of convenience, are reproduced as under: . Whether any particular expense falls in the capital field or revenue field has to be judged, looking to the nature of expenses and various tests laid down by the courts from time immemorial. In this age of computerization, various softwares are developed for smooth functioning of various business needs that helps business to run effectively, efficiently and profitably. The softwares keep on changing at a very fast pace with the growing requirement in the day-today business. Most of the softwares become obsolete in sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame at the year-end being ₹ 4,66,72,689/-. It was stated that out of the total outstanding unsecured loans, an amount of ₹ 4,12,47,000/- belonged to the assessee s holding company Marketing and Brand Solutions (India) Pvt. Ltd . (in short M B) and the balance of ₹ 54,25,689/- to Modi Entertainment Ltd. (in short Modi) (a related company). The amount belonging to Modi, represented excess amount received during the current assessment year against the advance given by the assessee in earlier years. That during the year under consideration, an amount of ₹ 1,34,37,000/- had been received by the assessee from M B. The AO treated the loans of ₹ 1,25,01,689/- as unexplained credit in the books of the assessee in the light of the provisions of section 68 of the Act on the ground that the entries in respect of these loans remained unexplained. Being aggrieved by the said addition, the assessee preferred appeal before the Ld. CIT(A). 7. The assessee submitted before the Ld. CIT(A) that it had taken the loan wholly and exclusively for the purpose of business. The assessee had obtained loan from its holding company in respect of which it had also submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence wherein it has been stated that the assessee was in possession of various documents such as retailer application forms, distributor agreement and the relevant receipts depicting the receipt of amount from various persons along with retailer application form. The said retailer application froms were not only signed by the respective parties but also having the photographs of the each party affixed along with name, address etc. duly mentioned thereupon. The Ld. A.R. has further submitted that the above stated documents were sufficient enough to prove the genuineness of transactions and the source of credits into the accounts of the assessee. It has been explained that these documents pertained to a 10 year old period and the assessee was making all out effort to trace the same, however, despite best efforts the same could not be produced before the lower authorities. Since the said documents have now been retrieved and the same go to the root of the case, it has been pleaded that the same be admitted as additional evidence in support of the pleadings of the assessee. The Ld. A.R. in this respect has further relied upon an affidavit of one Mr. Sushil M. Waghmare, Director of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in question was in fact the security deposits received by the assessee from the retailers and that the same was used for the purpose of business of the assessee. 14. The Ld. D.R., in this respect, has submitted that the finding of the Ld. CIT(A) are virtually not based on any concrete evidence on the file in this respect. 15. After going through the order of the Ld. CIT(A) on this issue and considering the submissions of the Ld. Representatives of the parties, we think it proper to restore this issue also to the file of the AO in the light of our observations made above while restoring the issue of addition of ₹ 1,61,15,409/- made under section 68 by the lower authorities in relation to ground No.2 of the assessee s appeal. Since this issue is interlinked and connected with the issue raised vide ground No.2 in the assessee s appeal, we therefore, direct the AO to decide this issue also afresh in the light of evidences furnished by the assessee in this respect. Ground No.2 16. Ground No.2 taken by the Revenue is relating to the action of the Ld. CIT(A) in deleting the addition made by the AO in respect of late deposit of Employees Contribution to PF. The cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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