TaxTMI 
TaxTMI 
2013 (6) TMI 658
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....ion made by the assessing officer of Rs.4,26,039/- on account of disallowance of software expenses by holding that the assessee had not acquired any new assets but merely upgraded its existing hardware & software. 2. The ld. CIT(A) ought to have upheld the addition made by the AO by disallowing claim of the revenue expenditure made by the assessee considering the fact that such claim was capital in nature." 1.1 In respect of above two grounds, the AO has noted by order under Section 143(3) dated 21.12.2011 that the assessee is a co-operative bank and claimed an expenditure of Rs.10,65,097/- towards software purchases. A show cause was issued to the assessee that it was eligible for depreciation @ 60% on the software purchases. The AO ....
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....2009) 309ITR 272 (Punj. & Har.) holding that no substantial question of law arose. Reference was also made to the judgment of Hon'ble Supreme Court in Alembic Chemical Works Co. Ltd. V. CIT (1989) 177 ITR 377/43 Taxman 312 (SC) to the effect that it would be unrealistic to ignore rapid advances in research and to attribute a degree of endurability and permanence to the technical know how at any particular stage in fast changing area of science." 1.4 Respectfully following the above decision we hereby affirm the findings of learned CIT(A). This ground of the Revenue is hereby dismissed. 2. Ground No.3 & 4 are reproduced below:- "3. On the facts and in the circumstances of the case and in law the CIT(A) has erred in deleting the addi....
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....as claimed by the assessee. 2.3 We have heard both the sides and perused the compilation filed before us. We have noted that in the case of DCIT Vs. Datacraft India Ltd. (2010) 40 SOT 295 (Mum.) (SB), it was held that the "router" and "switches" can be classified as computer hardware when they are used along with computer and when there functions are integrated with a computer. It was concluded that in such a situation the routers and switches are to be included in back of computers for the purposes of demanding the rate of depreciation. An another decision on this issue is pronounced in the case of ITO Vs. Samiran Majumdar (2006) 98 ITD 119 (Kol), wherein the issue was whether printers and scanners being integral part of computer system....
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....he members of the co-operative bank. The expenditure was disallowed. 3.2 When the matter was carried before the learned CIT(A), it was held that the submission of the assessee was self explanatory and he has directed to delete the addition. 3.3 Heard both the sides and perused the material placed before us. Undoubtedly, the assessee co-operative bank has distributed gifts, mementos, school bags, etc to the children of its members. Now, the question is that such distribution of gifts was allowable as business expenditure was an identical issue decided by ITAT Ahmedabad Bench in the case of ACIT Vs. The Gujarat State Co-operative Bank Ltd. in ITA Nos.1899/Ahd/2012, A.Y:2009-10, dated 31.01.2013, wherein the order of Hon'ble Jurisdiction....