TMI Blog2020 (4) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... gibility of the assessee to claim this deduction. Accordingly, we set aside the order passed by CIT(A) on this issue and restore the same to the file of the A.O. with the direction to apply with the provisions of section 80JJAA of the Act as applicable to the years under consideration. Nature of expenditure - claim of repair expenses incurred on lease hold building - revenue or capital expenditure - HELD THAT:- As rightly pointed out by A.R., in order to invoke the provisions of Explanation 1 to sec. 32(1), a finding has to be given first as to the nature of expenditure incurred by the assessee. If the nature of expenditure is capital in nature, then the provisions of explanation 1 to section 32(1) of the Act shall apply. It is the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition made u/s 80JJAA of the Income Tax Act, 1961 (hereinafter called as the Act ). b) Disallowance of expenditure incurred in lease hold premises treating the same as capital expenditure. c) Claim of MAT credit. 3. In assessment year 2012-13, assessee has raised issues relating to assessment of interest u/s 244A of the Act and non-granting of TDS credit. 4. We heard the parties and perused the record. The assessee is engaged in the business of developing computer software. 5. The first issue relates to disallowance of deduction claimed u/s 80JJAA of the Act. The Ld. A.R. submitted that the provisions of section 80JJAA of the Act have undergone changes from time to time. He submitted that the A.O., in both the years under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. with the direction to apply with the provisions of section 80JJAA of the Act as applicable to the years under consideration. 7. The next issue relates to disallowance of claim of repair expenses incurred on lease hold building, treating the same as capital expenditure. The Ld. A.R. submitted that the assessee has incurred certain expenses on lease hold premises and claimed the same as revenue expenditure. However, in the books of accounts, the above expenditure has been capitalized by the assessee. The Ld. A.R. submitted that the entries made in the books of accounts shall not bind the Income tax Act. He submitted that most of the expenses incurred by the assessee do not give rise to any capital asset. He submitted that asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue in nature. We notice that the tax authorities have not examined the nature of expenditure incurred by the assessee. We also notice that the assessee has furnished the various details of expenditure incurred by it on lease hold premises. Accordingly, we are of the view that this issue requires fresh examination at the end of the A.O., since the nature of expenditure incurred by the assessee is required to be examined in order to apply the provisions of Explanation 1 to section 32(1) of the Act. Accordingly, we set aside the order passed by the Ld. CIT(A) on this issue and restore the same to the file of the A.O. for examining it afresh. 10. The next common issue relates to claim for credit of MAT as per provisions of section 115JA ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
