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TMI Blog2009 (4) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... se for acquiring office space on lease and not for acquiring any capital asset. The consultancy charges were paid to Bharat S. Raut and Co. for preparation of agreement for legal costs cross charges, marketing cost cross charge, advice on exchange control issues for the aforesaid agreement, advice on withholding tax for remittance of the aforesaid agreement for preparing cost sharing arrangement of legal cost and marketing cost with the parent company in USA. The company has also incurred a total amount. It comprises of payment to M/s QSYS Constants for implementing ISO 9001: 2000 based Quality Management System as the major part of the amount was paid for professional fee to M/s QSYS. In this connection, reliance was placed on various d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... connect the high speed computers with the internet and also with the internal Local Area Network and allowed the depreciation claimed. HELD THAT:- We are of the considered view that the decision taken by the CIT(A) in this regard is correct and deserves to be upheld. A Router is a device that forwards data packets along networks and is connected to at least two networks, commonly known as Local Area Network (LAN) or Wireless LAN (WAN) and its ISP's network. The usage of the Router in the computer is not only required for its functioning, but is an important and an integral part of the computer for increasing the high speed with the interned efficiently. The order of the CIT(A) is, therefore, upheld and the ground of the revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 (d) Laxmi and Associates Brokerage charges for arranging office space 1,00,500 (e) Bharat S. Raut and Co. Advises on withholding tax 1,27,400 (f) Qsys Consultants ISO 9001-2000 Certification charges 64,800 (g) Design and Development Architect fees for Planning and Designing- Gurgaon Office 75,000 (h) Keystone Architect fees for layout and specifications - Gurgaon office 98,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e feasibility study on the software which is an integral part of regular business activity of the company. It was incurred to better understand the technical and economic aspect of the project as to give best quality to the customer. It was a sort of recurring expenditure and was seen in the context of the volume of business carrying on by the assessee whose gross turnover was ₹ 54,22,04,240. Therefore, the expenditure cannot be said to be capital in nature. Similarly, the consultancy charges of ₹ 21,600 were paid to Info Edge (India) Pvt. Ltd. (Naukri.Com) for accessing the personal bio-data of the personnel in the software sector for the use in its business as a comparative data. The consultancy charges of ₹ 74,000 were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed on various decisions of the Hon'ble High Court in which it has been that any expenditure which improves efficiency and does not lead to any additional asset is a revenue expenditure. Therefore, this expenditure, in our opinion, cannot be treated as capital expenditure. The consultancy charges of ₹ 75,000 were paid to Design and Development for planning, designing the interiors for Gurgaon office, a leased premises. This expenditure also, is to be treated as a revenue expenditure and cannot be said to be capital expenditure as no enduring benefit has been obtained by the assessee. The consultancy charges of ₹ 98,000 were paid to Keystone for architectural services such as layout plans, work station details, toilet deta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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