2016 (1) TMI 452

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....nue expenditure. 3. We have heard rival submissions and perused the orders of the lower authorities and the materials available on record. In the instant case, the Assessing Officer observed that the assessee has claimed expenses on software amounting to Rs. 10,11,000/-. The Assessing Officer treated the same as capital expenditure and allowed depreciation to the income of the assessee. 4. On appeal, Commissioner of Income Tax (Appeals) observed that the Hon'ble Delhi High Court in the case of CIT Vs. G.E. Capital Services Ltd. [164 Taxman 46 (Delhi)]  has held that expenditure incurred by the company on computer software, which was not customized software and said software required frequent up-gradation and hence, it was hel....

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....submissions of the Authorized Representative of the assessee. 7. In view of the above facts and circumstances of the case, we find no infirmity in the order of the Commissioner of Income Tax (Appeals) which is inconformity with the order of the Hon'ble Jurisdictional High Court and hence, the ground of appeal of the Revenue is dismissed in the year under consideration. 8. Ground No.2 of the appeal is directed against the order of the Commissioner of Income Tax (Appeals) deleting the excess interest of Rs. 46,12,758/- made by the Assessing Officer. 9. We have heard rival submissions and perused the orders of the lower authorities and the materials available on record. In the instant case, facts of the case are that the Assessing....

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.... interest from Income-tax Department Rs. 8.42 crores and interest on advance to employees Rs. 0.07 crores. The assessee has utilized the loan funds for the specific purpose, for which loan was obtained as and when required for the purpose of working capital for running the day to day operation of business; for the purpose of implementation of VRS as approved by the Government of India and for the purpose of purchase of computers as approved by the Government of India. The Commissioner of Income Tax (Appeals) therefore, held that there is no non-business utilization of fund and diversion of fund proved which the Assessing Officer had alleged in the assessment order without any basis. The interest debited in the profit & loss account and clai....