2018 (5) TMI 1700

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.... has raised the following questions of law for our consideration: "(1) Whether on the facts and circumstances of the case and in law, the Tribunal is justified in upholding the decision of CIT(A) in deleting the disallowance of SOFTWARE EXPENSES OF Rs. 38,90,369/treated by the AO as capital expenditure without appreciating that this software resulted in enduring benefit to the assessee ? (2) Whether on the facts and circumstances of the case and in law the Tribunal is justified in upholding the decision of CIT(A) in deleting the disallowance of miscellaneous expenses of Rs. 7,82,250/treated by the AO as capital expenditure without appreciating that this expenditure was incurred on account of onetime occupation Health & Saf....

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....t in this case both the CIT (Appeals) as well as the Tribunal have rendered a finding of the fact that the software purchased from M/s. C.A.India Technologies Pvt. Ltd. brought about better efficiency in the appellant's business as it enabled it to meet specifically user problem faced by the RespondentAssessee. The impugned order also records the fact that in view of fast changing technology, software has to be regularly updated so as to keep pace with the changing technology. On the aforesaid facts the view taken by the Tribunal that the expenditure of Rs. 38.90 Lakhs is on Revenue account is an entirely possible view. So far as the Revenue's grievance that once the CIT(A) has recorded the fact that benefit obtained is of enduring ....

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.... CIT(A) and the Tribunal is an entirely possible view. Therefore, the Question as proposed at Sr.No.(1) does not give rise to substantial question of law. Thus, not entertained. 4 Regarding Question No.(2): (a) The impugned order of the Tribunal has held that the expenditure of Rs. 7.82 Lakhs incurred towards consultancy fees, video shooting for training etc in respect of occupation, health and safety measure for the benefit of its employees to foster a safe working environment was revenue expenditure. It upheld the finding of the CIT(A) that the expenditure was incurred to ensure smooth functioning of its activity by ensuring accident free environment. (b) The grievance of the Revenue is that the expenditure incurred o....