2015 (1) TMI 474

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..... line was one of the purpose for which the feasibility report was to be prepared and the expenses were incurred. Thus the Tribunal cannot be said to have committed any error treating the expenses as business expenses or revenue expanses. Expenses claimed for purchase of Software - revenue v/s capital expenditure - Held that:- The Tribunal correctly found that the projects of software programme .....

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..... The present appeal is directed against the order dated 30.05.2014 passed by the Tribunal in ITA No.1264/Ahd/2006, whereby the appeal is partly allowed. 2. We have heard Mr. M.R. Bhatt, learned advocate for the appellant. 3. As per the appellant following substantial questions of law arise for determination of this Court. The same can be reproduced as under: [A] Whether th .....

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..... 5. Concerning to point question A, the discussion of the Tribunal is at para 7.3 of the order. The Tribunal in turn finds that considering the necessity and on the ground of commercial expediency, if the expenditure is incurred directly to facilitate the promotion of business, which may include the expansion of the business, it can be said as the business expenses and not capital expenses. 6. .....

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..... contention for the reason that it was not a matter where the project not at all concerning the regular business of the assessee, was to be established like in case of the above referred decision upon the reliance has been placed by Mr. Bhatt. On the contrary it is rather not in dispute that the project was for expansion of laying down the pipeline for supply of gas which is regular business of th .....

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..... We do not find any error committed by the Tribunal in finding that such expenses were revenue expenses. 11. On the 3rd question, the discussion by the Tribunal is at para 10.2 of the impugned order. As per the Tribunal as the assessee has regularly offered the tax, there is no reason to separately consider the work in progress and the expenses incurred thereto for different method for the purp .....

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