2008 (10) TMI 100

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.... was delivered by ADARSH KUMAR GOEL, J.—The Revenue has preferred this appeal under section 260A of the Income-tax Act, 1961 (in short, "the Act"), against the order of the Income-tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh, passed in I. T. A. No. 138/Chandi/2006, dated April 24, 2007, for the assessment year 2002-03, proposing to raise the following substantial question of law: ....

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....he Tribunal in the case of M/s. Abhishek Industries Limited, I. T. A. No. 395/Chandi/2006, assessment year 2001-02. The relevant discussion relating to this issue is in paragraph 4, which is reproduced hereunder: '4. The next issue raised by the Revenue pertains to deleting the addition of Rs. 4,00,936 on account of depreciation on computer software expenses. The contention of the learned Depar....

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....nses as revenue expenditure and in deleting the addition of Rs. 30,15,972. Accordingly, the ground raised by the Revenue is dismissed." 4. Learned counsel for the Revenue is not aware about the status of the decision of the Tribunal in Bank of Punjab Limited, which has been followed in the impugned order. 5. We have heard learned counsel for the Revenue. 6. It is well settled that for cla....

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....ks Co. Ltd. [1989] 177 ITR 377 (SC), the issue was whether the expenditure on technical know-how under an agreement with a foreign company was revenue expenditure. Answering the question in favour of the assessee, the hon'ble Supreme Court observed (in paragraph 13) that it would be unrealistic to ignore the rapid advances in research and to attribute a degree of endurability and permanence to the....