TEXAS INSTRUMENTS (INDIA) PRIVATE LIMITED,BANGALORE vs. ADDITIONAL COMMISSIONER OF INCOME TAX LTU, BANGALORE

ITA 852/BANG/2017Status: DisposedITAT Bangalore29 June 2022AY 2009-1059 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that data automation expenses are revenue in nature, following its own previous decisions and allowing the deduction. It also held that the ESOP expenses were wrongly disallowed due to a misinterpretation of invoice dates and should be allowed as a deduction.

What were the facts?

The assessee, a software development company, claimed deductions for data automation expenses and employee stock option plan (ESOP) expenses. The Assessing Officer disallowed these expenses, treating data automation as capital expenditure and ESOP expenses due to alleged lack of invoices. The CIT(Appeals) allowed data automation expenses but upheld the disallowance of ESOP expenses.

What were the issues?

Whether data automation expenses are revenue or capital in nature, and whether ESOP expenses are allowable as a deduction when invoices were allegedly not properly accounted for.

Which sections of the Income-tax Act were involved?

Section 80JJAA,Section 92CA,Section 143(2),Section 142(1),Section 144C,Section 40(a)(i),Section 234B,Section 234D,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(7)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “A” BENCH : BANGALORE

Before: SHRI N. V. VASUDEVAN & MS. PADMAVATHY S

For Appellant: Shri. Percy Pardiwala, Sr. Counsel
For Respondent: Shri. Sanjay Kumar S. K, CIT(DR)(ITAT), Bengaluru
Hearing: 15.06.2022Pronounced: 29.06.2022

Per Bench These are cross appeals against the order of the CIT(Appeals), LTU, Bangalore dated 31.01.2017 for the assessment year 2009-10. 2. The brief facts of the case are that the assessee is a private limited company incorporated in 1985 under the Companies Act, 1956 as a wholly owned subsidiary of Texas Instruments Incorporated, USA ["TI Inc"]. The assessee has an undertaking registered under the Software Techn

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80JJAA

All 275 judgments and leading authorities on Section 80JJAA →

Recent GST High Court judgments

Search GST case law →