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TMI Blog2016 (3) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... Niraj Sheth Revenue by : Shri D. Prabhakar Reddy (DR) ORDER R.C. Sharma, AM : These are cross-appeals filed by the assessee and revenue against order of CIT(A) for A.Ys 2007-08 and 2008-09, in the matter of order passed u/s. 143(3) of the Income Tax Act, 1961. 2. Rival contentions have been heard and record perused. Facts in brief are that assessee is engaged in busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... management to conduct assessee's business more efficiently or more profitably but it is not in the nature of profit-making apparatus. Therefore, expenditure on software was to be allowed. In the instant case also, assessee was in the business of shipping agent, software was used to facilitate assessee's business of shipping, therefore, there is no reason to treat the expenditure on software as ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns to service tax, which was payable on account of services rendered by the assessee. As per the service tax law, the service tax is payable as and when the payment/fees for under lying services provided by the assessee are realized. The CENVAT credit is available only on account of laws laid down under Central Excise Act. Here there is no valuation of stock of goods. Section 145A is a non obstant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason, the order of the Ld. CIT(A) is set aside and the addition made by the AO is deleted. In the result ground no. 3 is treated as allowed." 7. As the facts and circumstances during both years under consideration are same, respectfully following the order of the Tribunal this ground of assessee's appeal is allowed, in both the years. 8. In A.Y 2007-08 assessee has also taken a g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Hon'ble Delhi High Court in the case of Cheminvest Ltd., 378 ITR 33 wherein it was held that no disallowance u/s 14A should be made when there is no exempt income during the year. Respectfully following the order of the Hon'ble Delhi High Court, we delete the disallowance made u/s 14A of the Income Tax Act, 1961. 10. In the result, appeals of the revenue are dismissed, wherea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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