1985 (5) TMI 74

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....st the allowances of Rs. 94,976 as the revenue expenditure by the Commissioner (Appeals). 2. The assessee is a dealer for Hindustan Computers Ltd. It purchased a computer for purposes of demonstration and also to provide data processing service to its customers. It claimed a deduction of Rs. 1,24,964 as technical services paid to Hindustan Computers Ltd. The IAC allowed Rs. 20,000 out of the cl....

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....the above items of expenditure are revenue in nature. The Commissioner (Appeals) after referring to various case laws allowed the assessee's claim. The revenue is in appeal against the allowance of Rs. 94,976. 3. The main thrust of the revenue's argument against the allowance of the above sum was that the payment constituted part and parcel of the purchase price of the computer. When the assess....

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...., is the technical know-how that has to be purchased by the user of the computer to make effective use of the machine. The computer is programmed to receive and retain the information that is required and later retrieve the information, verify, make the necessary calculations, analysis, etc., and then give the information in the required form to the user. This is done with the help of the software....

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....uce the program development time considerably. The cost of this software is Rs. 20,000. (2) As it is very important to know the full capabilities of the computer, we will train 3 of your people in programming and systems analysis in our training centre in Madras. The duration of training is 3 weeks, and the cost of training is Rs. 20,000 for 3 people which includes lodging facilities. (3) In....