TaxTMI 
TaxTMI 
2015 (12) TMI 498
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....missioner of Income Tax (A)-III, Chennai, dated 30.10.2013 for the assessment year 2008-09 in ITA No.514/2013-14 and dated 25.02.2014 for the assessment year 2009-10 in ITA No.1558/2013- 14. Both the order is passed under section 143(3) read with section 250 of the Act. 2.1 The grounds raised by both the parties are concised herein below for adjudication. 2.2 Assessee's appeal A.Ys 2008-09 & 2009-10. The assessee has raised five & four grounds in its appeals for A.Ys 2008-09 & 2009-10 respectively and the same are concised as follows:- i) Ld. CIT (A) had erred in confirming the order of the Ld. Assessing Officer who had disallowed expenditure by invoking section 14A read with Rule 8D of the Act and made an addition of `11,55,800/- for A.....
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....p for scrutiny and the assessment was completed U/s.143(3) of the Act on 30.12.2011 for A.Y 2008-09 & on 10.12.2012 for A.Y 2009-10 wherein the Ld. Assessing Officer made certain additions which were further sustained by the Ld. CIT (A) against which this appeal is preferred before us. Assessee's Appeals 4.1 Ground No.i) - Disallowance of expenditure by invoking section 14A read with Rule 8D of the Act resulting in addition of `11,55,800/- for assessment year 2008-09 & `14,95,934/- for assessment year 2009-10. The Ld. Assessing Officer had computed the amount of expenditure to be disallowed U/s. 14A of the Act by taking into account of Rule 8D of the Rules for the assessment year 2008-09. Thereafter the Ld. CIT (A) reworked the computatio....
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....reported in 121 TTJ 865 wherein it was held that when any such amount is deducted from the export turnover from the numerator, the same shall also be deducted from the total turnover in the denominator while applying the formula (Profit x Export turnover / Total turnover) as provided under the Act. Revenue's appeal 6.1 Ground No.i) - treating the soft ware expenses for `16.03 lakhs as revenue expenditure for A.Y.2008-09. During the course of assessment proceedings the Ld.A.O observed that the assessee had incurred expenditure towards purchase of software for `32,42,522. The Ld.A.O after examining the vouchers and ledger account of the assessee disallowed `26,22,322/- as revenue expenditure and treated the same as capital expenditure howev....
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....penditure of the assessee and the book profit has to be computed accordingly. On appeal, the Ld. CIT (A) for the various reasons discussed in his order, directed Ld. Assessing Officer to treat the donation paid as expenditure in the P&L account of the assessee and thereafter arrive at the net profit for the purpose of Section-115JB of the Act. We are in agreement with the decision of the Ld. CIT (A) for the following reasons:- i) Section-2(10) of the Companies Act defines the company as defined in Section 3(1) of the Act. ii) As per section 13(1)(d) of the Act, the main objects of the company has to be stated in the Memorandum of Association of the Company. iii) Every company including the relevant assessee company cannot extend its scop....