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Income Tax - Highlights / Catch Notes

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The fact that an expenditure gives enduring benefit is by itself ...

Income Tax

April 19, 2014

The fact that an expenditure gives enduring benefit is by itself not conclusive as regards the nature of the expenditure - the disallowance on account of entrance fee paid by the assessee for Corporate membership of Cricket Club of India set aside - AT

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  1. Expense incurred upon construction of the drain for release of effluents have conferred benefit of an enduring nature upon the assessee - held as capital expenditure and...

  2. E-connectivity charges are revenue in nature as they do not result either in the acquisition of software by the assessee or in any enduring benefit to the assessee

  3. Quota written off - Licence / quota which was for a limited period of three years - though assessee had obtained enduring benefit, held as revenue in nature - AT

  4. Software expenditure having enduring benefit of not more than a year is revenue expenditure

  5. Software consumable expenses – The expenditure was incurred for application software and not for system software – The software was not of enduring nature and would...

  6. Product development cost as revenue expenditure - dyes brought an advantage of an enduring nature to the assessee - not allowed as revenue expenditure - to be...

  7. Expenses incurred on up-gradation of software do not result into acquisition of any asset nor acquisition of enduring benefits as software become obsolete very quickly -...

  8. Nature of expenditure - expenditure incurred for development of a new product including knowhow - Thus expenditure incurred by the assessee being technical consultancy...

  9. Depreciation @ 15% or 10% under the block furniture and fixtures - Considering the nature of expenditure, it can be safely concluded that the entire expenditure has been...

  10. Nature of expenditure - A.O. as well as the Ld. CIT(A) were erred in coming to the conclusion that expenditure incurred on developing new software platform is expected...

 

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