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| The Tax Publishers2020 TaxPub(DT) 2255 (Bom-HC) INCOME TAX ACT, 1961
Section 37(1)
Where Tribunal allowed assessee's appeal by holding that amounts spent on improvement of website would be in nature of revenue expenditure, even when said project was abandoned, but issue of abandonment of a project, was not found in order of lower authorities and there was some mix up in order by Tribunal, notice was issued to assessee.
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Business expenditure - Allowability - Expenses incurred on projects pertaining to assessee's website 'rediff.com' -
Revenue challenged order of Tribunal treating expenses incurred on projects pertaining to assessee's website 'rediff.com' as revenue expenditure instead of capital expenditure without properly appreciating fact that if said projects were successful, then such expenditure was providing enduring benefits to business of assessee. Held: Tribunal allowed assessee's appeal by holding that amounts spent on improvement of website would be in nature of revenue expenditure, even when said project was abandoned. Prima facie, any issue of abandonment of a project, was not found either in order of AO or order of CIT(A). Prima facie, it appeared that there was some mix up in order by Tribunal. Registry was directed to issue notice to assessee and keep matter on board for admission on stipulated date.
REFERRED : CIT v. M/s. Tata Robins Fraser Ltd. (2012) 26 taxmann.com 15 (Jhar) : (2012) 211 Taxman 257 (Jhar) : 2012 TaxPub(DT) 3014 (Jhar-HC)
FAVOUR : Notice issued
A.Y. : 2006-07
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