9911796707
TMI Blog2021 (10) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. (THROUGH VIDEO CONFERENCING) ORDER : 1. In this case, the respondent had claimed a deduction of Rs. 8,16,67,747/- on account of capital work-in-progress written off in computation of its income. Respondent had initiated many projects to enrich its website with an intention to add new features to the website and to enhance its existing products to keep its website updated. Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with the Assessing Officer. 2. Assessing Officer was not convinced with respondent's submissions and held that the expenditure was incurred for creation of new projects and these projects were capital assets of its business which were to yield enduring benefit. Assessing Officer also held that by parking such expenditure under the head "capital work-in-progress", respondent itself has admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and admittedly were of routine nature like salary, professional fees, etc., and these expenses are otherwise clearly of revenue in nature. By observing that CIT(A) misread the judgment of the Jharkhand High Court in the case of CIT Vs. Tata Robins Fraser Ltd. (2012) 78 DTR 22., the ITAT held that such expenses were allowable as revenue expenses. Paragraph 16 of Tata Robins Fraser Ltd. (Supra) rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... already damaged. The other articles bought by the assessee also got damaged and, therefore, in that fact situation, the Tribunal was fully justified in holding that such expenditure which may be pre-operational expenditure for a project can be treated to be a revenue expenditure actually and not a capital expenditure......." 5. The ITAT also relied upon the judgment of this Court in CIT Vs. M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but there is no stay. 7. Therefore, the ITAT's view that if an expenditure is incurred for doing the business in a more convenient and profitable manner and has not resulted in bringing any new asset into existence, then, such expenditure is allowable business expenditure, is correct. 8. In our view, ITAT has not committed any perversity or applied incorrect principles to the given facts and wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
