IT : Where expenses towards IT system maintenance in respect of restructuring of a company was not having enduring benefit and as no asset was brought into existence on such expenses, said expenditure could not be capital in nature
■■■
[2014] 51 taxmann.com 517 (Gujarat)
HIGH COURT OF GUJARAT
Commissioner of Income-tax-I
v.
Gujarat Urja Vikas Ltd.*
MS. HARSHA DEVANI AND MS. SONIA GOKANI, JJ.
TAX APPEAL NO. 820 OF 2014†
AUGUST 26, 2014
Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (IT system maintenance) - Assessment year 2006-07 - Whether where fees paid for IT system maintenance in respect of restructuring of company was not having enduring benefit and as no asset was brought into existence on such payment, it could not be cateogorised as capital in nature - Held, yes [Paras 8.1 & 11] [In favour of assessee]
■■■
[2014] 51 taxmann.com 517 (Gujarat)
HIGH COURT OF GUJARAT
Commissioner of Income-tax-I
v.
Gujarat Urja Vikas Ltd.*
MS. HARSHA DEVANI AND MS. SONIA GOKANI, JJ.
TAX APPEAL NO. 820 OF 2014†
AUGUST 26, 2014
Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (IT system maintenance) - Assessment year 2006-07 - Whether where fees paid for IT system maintenance in respect of restructuring of company was not having enduring benefit and as no asset was brought into existence on such payment, it could not be cateogorised as capital in nature - Held, yes [Paras 8.1 & 11] [In favour of assessee]
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