9911796707
TMI Blog2014 (6) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of computer software maintenance expenses – Withdrawal of depreciation allowance – Held that:- The expenditure incurred by the assessee on replacement of old software for ₹ 69,187/- and rest of the expenditure on account of annual maintenance charges - The replacement of latest version of the software does not result in creation of a new capital asset or in expansion of the capital base – thus, it has to be allowed as revenue expenditure u/s 37(1) as decided in CIT(A)’s order – Decided against Revenue. Allowability of STCG on motor car u/s 50 of the Act – Held that:- The assessee has not explained the reason that why the motor car was sold at an amount less than ₹ 84,174/- than the WDV of the car to its own director - CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue expenditure. He referred to relevant portions of the assessment order in support of the case of the Revenue. The learned counsel for the assessee submitted that the decisions of the Hon ble Courts cited by the AO were distinguishable on facts. He submitted that the business premises of the assessee were taken on lease and the assesee has replaced old tiles, wooden partition, pest control, colouring, rolling shutter, flat glass, plywood, sanitary ware, hardware and labour charges. He relied on the order of the CIT(A). 4. We have considered rival submissions and perused the orders of the AO and the CIT(A). We find that no new asset has come into being on account of expenditure incurred by the assessee on replacement of old tiles, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of a new capital asset or in expansion of the capital base, and therefore, has to be allowed as revenue expenditure under section 37(1). Accordingly, the order of the CIT(A) on this issue is confirmed and the ground no.2 of the Revenue is dismissed. 8. The ground no.3 of the Revenue is as under: 3. The ld.CIT(A) erred in law and on facts in directing to allow the claim of short term capital loss amounting to Rs.84,174/- on motor car (depreciable asset) u/s.50 of the Act. 9. The learned DR submitted that the assessee could not explain that why the motor car was sold at a price which was less than the WDV of the car to is own director, and therefore, disallowance of Rs.84,174/- on motor car was rightly made by the AO. The learne ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
