2011 (11) TMI 443

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....irming the order-passed by the Commissioner of Income-tax (Appeals). 2. The material facts leading up to this appeal are as under: The assessee is an exporter of software and filed return of income on 27.11.1998 showing the return of income at Rs. 3,33,94,389/-, which was processed under Section 143(1) of the Income-Tax Act (hereinafter called as the 'Act') on 23.8.2000 accepting the income returned. After scrutiny of the assessment made on 23.8.2000, a notice was issued under Section 143(2) of the Act. In response to which the assessee furnished details. The notice pertains to payment of Rs. 1,93,521/-. to clubs to acquire corporate membership, the expenditure incurred in a sum of Rs. 8,74,278/- towards ISO certification and the amou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ave the benefit of fluctuation in the value of rupee in respect of value of export of software made by him. Accordingly, allowed the appeal. Being aggrieved by the same the revenue preferred appeal and the assessee also has preferred appeal regarding the other findings, which are not the subject-matter of this appeal. The ITAT by a common order-dismissed the appeal filed by the revenue. Being aggrieved by the same, this appeal is filed raising the following substantial questions of law for consideration of this Court, which are as under: (1)  Whether the Appellate authorities were correct in holding that corporate membership fee paid by the assessee to acquire membership of a club in a revenue expense and not a capital expense as he....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... The said substantial questions of law have been answered against the revenue and in favour of the assessee in ITA. No. 2975/2005, disposed off on 21.10.2011, ITA. No. 3011/2005 disposed off on 21.10.2011 and ITA.No.2973/2005 disposed off on 4.11.2011 respectively. Accordingly, following the reasons assigned in the said judgments rendered by this Court, substantial questions of law 1 to 3 are answered against the revenue and in favour of the assessee. 6. Regarding the 4th substantial question of law, the learned counsel submitted that if there is any fluctuation in the valuation of rupee in terms of the foreign exchange which is brought into India, the same cannot be taken into account and has to be included in other receipts and submitt....