TaxTMI 
TaxTMI 
2018 (3) TMI 1204
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....facts and in the circumstances of the case the Ld. CIT(A) erred in deleting the addition/disallowance of Rs. 3,90,000/- made by the Assessing Officer on account of SAP software license. Ld. CIT(A) had also erred in allowing the depreciation of SAP Software @60% instead of 25%. 3. On the facts and in the circumstance of the case, Ld. CIT(A) erred in deleting the addition/disallowance of Rs. 50,35,000/- made by the AO u/s 14A 4. The appellant craves, leave or reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of appeal. 2.1 The grounds of appeal raised by the assessee in ITA No. 5932/Del/2014 are reproduced as under: 1. That the CIT(A) erred in holding that the appellant company is not entitled for refund of excess Dividend Distribution Tax paid of Rs. 44.05 lacs for the reason that there is no provision in the Act for cancellation of the dividend or refund of dividend distribution tax pursuant to amalgamation. He failed to appreciate that since amalgamation was effective from 01.04.2009 all subsequent entries between the companies amalgamated during pendency of approval of amalgama....
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.... a fresh. 4.2 On the contrary, the Ld. counsel submitted that the Assessing Officer has wrongly disallowed the expenses considering the same in the nature of mutation charges. According to the Ld. counsel, the payment was in the nature of land revenue except for a small amount of Rs. 10,200/- which was paid for changing the name of the company from 'Jay Engineering Works' (old name) to 'Usha International Ltd'. The Ld. counsel filed a paper book containing pages 1 to 82 and referred pages 6 to 16, which are receipt of land revenue charges paid in respect of the land. The Ld. counsel contended that the Ld. CIT(A) considering the nature of expenditure as land revenue expenses, he has allowed the deduction for the same. 4.3 We have heard the rival submissions and perused the relevant material on record including the pages of the paper book referred by the Ld. counsel. We find that the Assessing Officer in the assessment order has mentioned that during assessment proceeding, the assessee submitted a reply dated 18/02/2013 and, according to which, the expenses were incurred for mutation of the land in the name of the company. According to the Assessing Officer, the expenses relate....
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....ight hundred and twenty only) towards payment of land revenue for Bangla San 1416 in respect of our various premises totaling 27.80 acres in Roynagar Mouza." 4.7 Thus, it is manifested that, these payments are in the nature of land revenue charges of lands, which prima facie appears to be related to agricultural land. If these expenses are incurred related to agricultural land, then, in our opinion, such land revenue charges paid are not in any manner incurred wholly and exclusively for the purpose of the business, as income from agricultural activity is exempted from Income-tax. The letters issued by the land revenue authorities demanding land revenue, which are available on pages 8, 10, 12, have been written in "Bengali" language & script and no English translation has been filed, thus, we are not able to decide with certainty whether the land in respect of which payment has been made, is agricultural land. The Ld. CIT(A) has also not discussed these documents in his order before arriving at conclusion that these expenses are revenue in nature. In such circumstances, we feel it appropriate to restore this issue to the file of the Assessing Officer for deciding afresh. The asse....
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....fficiently without touching the profit-making structure of the assessee and it would be capital expenditure, if it has enhanced capacity of profit-making apparatus of the assessee. According to Ld. DR, the lower authority has not visited the said expenses from this angle and, therefore, the issue may be restored back to the file of the Assessing Officer for deciding afresh. 5.4 On the contrary, Ld. counsel submitted that computer software license charges are in the nature of revenue expenditure as held by the Hon'ble Delhi High Court in the case of CIT Vs. Asahi India Safety Glass Limited, (2012) 346 ITR 329(Delhi). 5.5 We have heard the rival submission and perused the relevant material on record, including the decision relied upon by the Ld. counsel of the assessee. In the case of Asahi India Safety Glass Limited (supra), the assessee acquired an application software to execute tasks in the field of financial accounting, inventory and purchase and that application software was required to be updated from time to time, based on statutory requirements. The Hon'ble Delhi High Court in background of above facts held that 'if the expenditure incurred in enables profitmaking stru....
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....5.7 In view of the above facts and circumstances, we feel it appropriate to restore the issue to the file of the Assessing Officer for deciding afresh in accordance with law. The assessee is directed to furnish all necessary documents for deciding the issue in view of the decision of the Hon'ble Delhi High Court discussed above. It is needless to mention that the assessee shall be provided adequate opportunity of being heard. Accordingly, the ground no. 2 of the appeal of Revenue is allowed for statistical purposes. 6. The ground No. 3 of the appeal of the Revenue relates to disallowance of Rs. 50,35,000/- made by the Assessing Officer under section 14A of the Act read with Rule 8D of Income-tax Rules, which has been restricted by the CIT(A) to the dividend income earned of Rs. 6,08,000/-. 6.1 The Ld. Sr. DR relied on the order of the Assessing Officer, whereas, the Ld. counsel relied on the order of Ld. CIT(A) and the decision dated 25.02.2015 of the Hon'ble Delhi High Court in the case of Joint Investment Pvt. Limited Vs CIT in ITA No. 117/2015. 6.2 We have heard the rival submission and perused the relevant material on record. We find that assessee during the year under....
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.... the issue as it was not emanating from the order of the Assessing Officer 7.4 We have heard the rival submission and perused the relevant material on record. The Ld. counsel drawn our attention to page No. 30 and 31 of the paper book, which is an application filed by the assessee before the Assessing Officer on 18/04/2012 and submitted that the Assessing Officer did not decide the issue of refund of dividend distribution tax raised in the said application. We note that since the Assessing Officer did not decide the issue in the assessment order, the ld. CIT(A) did not adjudicate on the issue. In our opinion, if the Assessing Officer had not adjudicated the issue, the CIT(A) should have directed him to dispose off the application of the assessee. Though the issue in dispute is not part of the income assessment of the assessee, however, in the interest of natural justice, we direct the Assessing Officer to dispose off the application of the assessee dated 18/04/2012, seeking a refund of excess payment of dividend distribution tax, in accordance with law. Accordingly, ground No. 1 of the assessee is allowed for statistical purposes. 8. The ground No.2 of the appeal of the asses....