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TMI Blog2012 (5) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... ich goes with the servicing as well. Another item is internet charges and small expenditure expended on training. The major amount is spent for IT help desk. It is to be seen that none of these expenses was incurred for acquiring any new system or facility of enduring nature. By the nature of the expenditure itself, it is clear on the face of the records that the expenses incurred were in the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has claimed deduction of ₹ 61,32,795/- towards operating expenses under the head software expenses . On perusal of the records of the case, the Commissioner of Income-tax found that the Assessing Officer has allowed the above claim made by the assessee without examining whether the software expenses claimed by the assessee is allowable as revenue expenses or to be treated as capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase of software. Having the basic facts so accepted, let us go to the details of the expenditure which totalled to ₹ 61,32,795/-. This is available in the details filed before the assessing authority. The same has been placed before us by the learned Chartered Accountant appearing for the assessee in page 4 of the paper book filed by him on 11.11.2011. As per the details available on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amounts for running its software system and not for acquiring any new system. Consumables and others were purchased for servicing the existing net work. This is the same which goes with the servicing as well. Another item is internet charges and small expenditure expended on training. The major amount is spent for IT help desk. It is to be seen that none of these expenses was incurred for acqu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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