SUNDRAM FINANCE LOMITED,CHENNAI vs. ACIT, CIRCLE-1,LTU, CHENNAI

ITA 81/CHNY/2022Status: DisposedITAT Chennai28 June 2024AY 2017-18Bench: SHRI ABY T VARKEY, HON’BLE (Judicial Member), SHRI S. R. RAGHUNATHA, HON’BLE (Accountant Member)26 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that software development expenses are capital in nature and depreciation is allowable at 60%, upholding the CIT(A)'s decision. The Tribunal also held that recovery of bad debts written off by amalgamating companies is taxable in the hands of the successor company.

What were the facts?

The assessee, Sundaram Finance Limited, a non-banking finance company, incurred software development expenses and claimed them as revenue expenditure. The Assessing Officer treated these expenses as capital expenditure and allowed depreciation. The assessee also claimed recovery of bad debts written off by amalgamating companies as non-taxable.

What were the issues?

Whether software development expenses are revenue or capital expenditure, and whether recovery of bad debts by a successor company is taxable.

Which sections of the Income-tax Act were involved?

Section 41(1),Section 41(4),Section 37(1)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(9)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.

आयकर अपीलीय अिधकरण,‘बी’"यायपीठ,चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI "ी एबी टी वक", "याियक सद"य एवं "ी एस. आर.रघुनाथा, लेखा सद"य के सम" BEFORE SHRI ABY T VARKEY, HON’BLE JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 07, 08 & 09/Chny/2018 िनधा"रणवष" / Assessment Years: 2010-11, 2011-12 & 2011-12 Deputy Commissioner of Income Sundaram Finance Limited, v. Tax, 21, Patullos Road, Large Taxpayer Unit -1, Chennai – 600 002. Chennai – 34. [PAN: AAACS-4944-A] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./ITA Nos.: 26, 27 & 28/Chny/2018 िनधा"रणवष" / Assessment Years: 2010-11, 2011-12 & 2011-12 Sundaram Finance Limited, Deputy Commissioner of Income v. 21, Patullos Road, Tax, Chennai – 600 002. Large Taxpayer Unit -1, [PAN: AAACS-4944-A] Chennai – 34. (अपीलाथ"/Appellant) (""यथ"/Respondent)

आयकरअपीलसं./ITA No.: 79/Chny/2022 िनधा"रणवष" / Assessment Years: 2015-16 Deputy Commissioner of Income Sundaram Finance Limited, v. Tax, 21, Patullos Road, Large Taxpayer Unit-1, Chennai – 600 002. Chennai – 34. [PAN: AAACS-4944-A] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./ITA Nos.: 80 & 81/Chny/2022 िनधा"रणवष" / Assessment

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 41(1)

All 1,943 judgments and leading authorities on Section 41(1) →

Recent GST High Court judgments

Search GST case law →