TaxTMI 
TaxTMI 
2015 (12) TMI 347
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....e AO on Date of Hearing 20.08.2015 Date of Pronouncement 28.8.2015 account of disallowance of Licensing/registration fee & ISO registration fees being of capital in nature? 2. That the order of the ld. CIT(A) is erroneous and is not tenable on facts and in law." 3. We have heard arguments of both the sides and carefully perused the relevant material placed on record, inter-alia, assessment order, order of the CIT(A) and ratio of the judgments/orders relied by both the sides. The ld. DR submitted that the AO was correct in holding that the expenditure incurred on account of licensing/registration fee and ISO registration fees is in the nature of an expenditure which is of enduring benefit to the assessee. The ld. DR vehemently submitted ....
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....2006 ISO 9001 Registration 10000 85000 21980 9367 License & Registration fee 561347 2721409 760179 65100 That the license and registration is incurred every year and our case was also scrutinized during assessment year 2006-07 also and no addition was made during the year. Copy of assessment order and balance sheet is enclosed for your verification. That in our case we have incurred expenditure not for acquiring any right to operate services etc. but are the expenses paid to development centers providing localized Global E-Commerce Services to Card Holder and no new assets have been created of an enduring nature but expenses have been incurred for maintaining the business of the company. The name which the parties may g....
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....diture of plant registration and licensing and registration fee for different places all over India. These expenditures are allowed to the appellant company in other years except this year. Hence, considering the Rule of consistency and treating this as revenue expenditure for improving business of the companies themselves, it is nothing but revenue expenditure. The AO should enquire these facts at the assessment stage and try to understand what the business is going today with such plant and machinery, such manpower deployment and resources so that unnecessary infructuous addition can be avoided. He should discuss the matter with his colleagues and supervisor officers in case he has any doubt. Hence the addition of Rs. 28,06,409/- is delet....