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| The Tax Publishers2020 TaxPub(DT) 3151 (Mum-Trib) INCOME TAX ACT, 1961
Section 37(1)
Where assessee had placed on record copy of submission with regard to the software expenses before AO and also filed application for admitting additional evidences on the issue and despite sufficient material on record, including the copy of tax invoice with regard to annual maintenance of Software and written submission, CIT(A) affirmed the action of AO without examining the facts by holding that no submissions were made by assessee, therefore, AO was directed to allow the expenses claimed by assessee.
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Business expenditure - Disallowance of annual maintenance charges for software - Allegation that expenses did not pertain to relevant assessment year -
Assessee was engaged in Scientific and Industrial Research. The case was selected for scrutiny and the assessment was completed under section 143(3). AO while passing the assessment order besides the other additions/ disallowance made disallowance of Software expenses by taking view that as per invoice dated 10-3-2014 it was paid up to 31-12-2014, which was only for one month, thus, the same did not pertain to the relavant assessment year. Held: Assessee had placed on record copy of submission with regard to the software expenses before AO and the copy of written submission filed before CIT(A) on the issue of Software expenses. Assessee also filed application for admitting additional evidences on the issue. On the admission of additional evidence CIT(A) sought the remand report of AO. Despite sufficient material on record, including the copy of tax invoice with regard to annual maintenance of Software and written submission, CIT(A) affirmed the action of AO without examining the facts by holding that no submissions were made by assessee. Therefore, AO was directed to allow the expenses claimed by assessee.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
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