2018 (9) TMI 1094

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....umar For The Respondent : Mr.Vijayaraghavan, for M/s.Subbaraya Aiyar Padmanabhan And Ramamani ORDER COMMON JUDGMENT [Judgment of the Court was made by T. S. SIVAGNANAM, J] These appeals, by the Revenue, are directed against the common order of the Income Tax Appellate Tribunal Madras 'A' Bench, dated 29. 01. 2016 in ITA No. 1366/Mds/2014 for the Assessment Year 2001-02 and 2....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e and that too, for a considerable period of time. On appeal before the Tribunal, the assessee contended that in view of the advanced technology, the software becomes obsolete within short intervals. Further the software purchased were not customer made but one as could be used by anyone and the assessee has only a right to use. The assessee made an alternate submission that if it is treated as ca....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he assessee under the head 'plant and machinery given on lease' and that apart, the assessee has incurred expenditure towards installation of plant and machinery and in addition to it, it had incurred expenditure towards software expenses. The assessee claimed the installation expenses as deduction debiting it to the profit and loss account and the software expenses were treated in the acc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....al was entitled to take into consideration. In our considered view, the decision in Bharti Televentures is not applicable to the case on hand as there is no material before the Tribunal or before the Assessing Officer as was pointed out in the said case. As held by the Honourable Supreme Court in Empire Jute Co. Ltd. v. CIT, [1980 (124) ITR 1 (SC)] there may be cases where expenditure, even if inc....