Court affirms Tribunal's decision on intangible assets, declines interference on various issues, remands share expenses.

The Court upheld the Tribunal's decision to remand the matter regarding the claim of depreciation on intangible assets. It declined to interfere with the decision on the addition made on account of bogus purchase, disallowance of interest, loss on sale of raw materials, and differences in balance. The Court remanded the issue of share and debenture issue expenses for further adjudication and upheld the deletion of machinery repair expenses based on factual considerations. Overall, the Court provided detailed analysis on each issue raised in the appeal and decided accordingly.

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Issues involved:
1. Disallowance of claim of depreciation on intangible assets (software)
2. Addition made on account of bogus purchase
3. Disallowance of interest under section 36(1)(iii) of the Act
4. Disallowance of loss on sale of raw materials
5. Differences in balance of Rs.14,03,85,459
6. Disallowance of share and debenture issue expenses
7. Disallowance of machinery repair expenses

Detailed Analysis:
1. Disallowance of claim of depreciation on intangible assets (software):
The Tribunal remanded the matter to the Assessing Officer, upholding the decision of the CIT(A) regarding the nature of software as an intangible asset. The Tribunal found support for this decision in a valuation report and the evidence provided by the assessee. The Court declined to interfere with this decision, considering it a remand to the Assessing Officer. The issue was also addressed in another Tax Appeal and was not deemed fit for interference.

2. Addition made on account of bogus purchase:
This issue was not entertained as it was based on factual aspects and had similarities with another Tax Appeal. The Court found no grounds for consideration on this matter.

3. Disallowance of interest under section 36(1)(iii) of the Act:
The Tribunal deleted the addition on the grounds that advances were made for legitimate purposes, such as purchasing raw materials or plant-machinery, and there was no diversion of interest-bearing funds. The Court cited established law on this issue and found no need for further consideration.

4. Disallowance of loss on sale of raw materials:
The Tribunal deleted the addition, noting that the assessee had provided detailed evidence of the loss, which was not contested by the Assessing Officer. The Court found the decision to be based on factual grounds and declined to interfere.

5. Differences in balance of Rs.14,03,85,459:
The Tribunal deleted the addition after considering the explanation and reconciliation statement provided by the assessee. Both the CIT(A) and the Tribunal confirmed the deletion based on the evidence furnished. The Court saw no reason to interfere with this decision.

6. Disallowance of share and debenture issue expenses:
This issue was remanded by the Court to the Tribunal for adjudication on merit rather than a complete remand. Notice was to be issued to the revenue for further consideration based on the Court's stance in a previous Tax Appeal.

7. Disallowance of machinery repair expenses:
The Tribunal deleted the addition based on factual considerations, noting that similar additions were deleted in a previous assessment year. The Court found no need for further consideration on this issue.

In conclusion, the Court addressed each issue raised in the appeal, providing detailed analysis and reasons for upholding or deleting the additions based on the facts and legal principles involved.

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