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TMI Blog2023 (10) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order would show that what worried the AO was that the respondent/assessee had made no effort to earn income. As a matter of fact, the proposition put forth by the AO that since there is no income chargeable under Section 28 of the Act, therefore, no expenses could be claimed by an assessee under Sections 30 to 37 of the Act, in our view, is completely unsustainable.This position has also been affirmed by the Tribunal. We are in complete agreement with the approach adopted by the Tribunal. The AO, in our opinion, asked the wrong question and, therefore, got the wrong answer. We may also note that during the course of arguments, we had asked Mr Maratha as to whether he had placed on record the order of the Tribunal concerning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls. 1.1 The period for which condonation of delay is sought is identical in both the subject appeals. 1.2 According to the appellant/revenue, there is a delay of seven (7) days in filing and 104 days in re-filing the appeals. 2. Mr Deepak Chopra, who appears on behalf of the respondent/assessee, says that he does not oppose the prayers made in the above-captioned applications. 3. Accordingly, the delay is condoned. 4. The applications are disposed of, in the aforesaid terms. ITA 499/2023 ITA 500/2023 5. As noted above, the above-captioned appeals concern Assessment Year (AY) 2014-15 [ITA No. 499/2023] and AY 2013-14 [ITA No. 500/2023]. 6. Via the above-captioned appeals, the appellant/revenue seeks to assail a common order passed by the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition made by the AO with regard to expenses that had been disallowed. (vii) It is in these circumstances that the respondent/assessee preferred an appeal with the Tribunal. 9. The Tribunal reversed the view taken by the CIT(A) and the AO. While doing so, the Tribunal also took note of the fact that in AY 2012-13, the AO had accepted the stand of the respondent/assessee that the expenses incurred by it were on the revenue account, and not capital expenditure. 10. The Tribunal also noted that the Principal Commissioner of Income Tax [in short, PCIT ] had taken out the proceedings under Section 263 of the Act, vis-vis AY 2012-13. However, the Tribunal qua the said AY, i.e., AY 2012-13, had reversed the order passed by the PCIT. 11. Mr Abhish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16. The following observations made in the assessment order lend credence to what is noted hereinabove: The fact of the case is totally different from the fact of cases relied upon by the assessee. In all the above referred cases, efforts have been made to earn income but income could not be realized whereas in this case, the assessee has not started any effort to earn income. It is just in process of making a brand for future utilization of earning income so any expenses thereupon can't be held to be held in the expenses in the nature of revenue. Moreover, when there is no income chargeable u/s 28, no expenses u/s 30 to 37 can be claimed in this regard. In view of the total expenses claimed in the P L a/c of Rs. 43,01,40,500/- are her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal noted the stand of the respondent/assessee with regard to the technology used by it to carry on its business. 24. It is important, therefore, to extract that portion of the respondent/assessee s submission which was accepted by the AO in AY 2012-13, as it lends perspective to the issue raised in the context of the nature of business conducted by the respondent/assessee: 3. In this case, the ld. Pr.CIT gave a notice to the assessee and informed that the order passed by the Assessing Officer (AO) in this case was prima facie erroneous and prejudicial to the interests of the revenue, since the AO while framing the assessment order on 22.03.2016 had allowed an amount of Rs. 2,85,00,224/- [which included depreciation of Rs. 2,77,16,925/-], b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd do not need any certificate of being ready. 1.4.2 These are always available on the cloud and are messaging applications. 1.4.3 These are basically reached through open source code as supplied by the transferor and Cloud Computing Tools. 1.4.4 This open source code is deployed on the cloud on a platform such as GitLab, which is similar to Drop Box . 1.4.5 Lists of intellectual property items are (PB 84,85): (1) SSO/Connect/Register, (2) Payment, (3) Contact Management, (4) Content Management, (5) Account Management, (6) News Feeds, (7) Sharing, (8) Advertisement, (9) Notification, (10) Anti-spam, (11) VIP System, (12) Gift System, (13) Profile, (14) Status, (15) Social Graph, (16) Apps Management, (17) Developer Portal, (18) User Control ..... X X X X Extracts X X X X X X X X Extracts X X X X
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