https://www.taxtmi.com/caselaws?id=774527 ITAT Chennai allowed the appeal regarding software charges disallowance. The assessee selected a vendor after evaluating quotations from reputed companies and paid charges for software development and maintenance. Lower authorities treated transactions as sham based solely on agreements. ITAT deleted the disallowance following identical ruling in associate trust's case. Regarding personal gifts of Rs. 20,500 received by an individual recorded in gift management system, ITAT held these should be taxed in recipient's hands, not the trust's. Since gifts were below Rs. 50,000 threshold under section 56(2)(x)(a), no tax liability arose and addition was deleted. en-us Mon, 07 Jul 2025 00:00:00 +0530 Thu, 10 Jul 2025 08:39:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774527 ITAT Chennai allowed the appeal regarding software charges disallowance. The assessee selected a vendor after evaluating quotations from reputed companies and paid charges for software development and maintenance. Lower authorities treated transactions as sham based solely on agreements. ITAT deleted the disallowance following identical ruling in associate trust's case. Regarding personal gifts of Rs. 20,500 received by an individual recorded in gift management system, ITAT held these should be taxed in recipient's hands, not the trust's. Since gifts were below Rs. 50,000 threshold under section 56(2)(x)(a), no tax liability arose and addition was deleted. Case-Laws Income Tax Mon, 07 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774527