2020 (8) TMI 164

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.... On the facts & circumstances of the case and in law, the AO erred in disallowing annual maintenance charges for software amounting to Rs. 3,03,372/* out of total annual maintenance charges amounting to Rs. 3,37,080/- on the ground that the same do not pertain to the assessment year under consideration without appreciating that the Appellant had reversed prior period expenses amounting to Rs. 252,81- and claimed only the net expenditure. 2. The Appellant humbly prays that the AO be directed to delete the addition of Rs. 3,03,372/- and allow the actual claim made by the Appellant amounting to Rs. 50,562/- [3,37,080 (Actual Expense) - 2,52,810 (Reversed) - 33,708 (Allowed during assessment proceedings)]. 2. Brief facts of the case....

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....idered the invoice date 10th March 2014 as beginning of the contract and allowed expenses of one month only. The ld AR for the assessee submits that no details were required by assessing officer before making disallowance. Complete details were furnished to ld CIT(A) for expenses incurred by the assessee. It was explained that the assessee reversed the amount which was prepaid i.e. for the period 1st April 2014 to 31st December 2014 for nine months of Rs. 2,52,810/- (being 3,37,080/12*9). The ld CIT(A) confirmed the action of assessing officer without verifying the facts by holding that no submissions was made by the assessee, though complete details were furnished and written submissions were also filed by the assessee. The ld AR for the a....