Amway India Enterprises v. DCIT

DCIT 12(1)(1), Mumbai vs. Allied Instruments P.Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri G.S.Pannu & Shri Ravish Soodthe Dcit,12(1)(1), R.No.223, 2Nd Floor, Aaykar Bhavan,M.K.Road, Mumbai 400 020 ...... Appellant Vs. M/S. Allied Instruments Pvt. Ltd., 30, Cd Govt. Industrial Estate, Kandivali (W), Mumbai 400 067 Pan: Aaaca 1032F .... Respondent

…of software expenses, the Ld.Representative for the assessee pointed out that the Assessing Officer rejected the plea of the assessee for revenue expenditure following the decision of the Special Bench of the Tribunal in the case of Amway India Ltd. vs. DCIT, 111 ITD 112(SB)(Del). It was pointed out that the said decision of the Tribunal has since been partly reversed by the Hon'ble Delhi High Court also, which shows that the issue was debatable and no penalty under section 271(1)(c) of the Act was leviable in such a situation. 6. The Ld. Departmental Representative has assailed the order of the CIT(A) by pointi…

ACIT 14(2)(2), Mumbai vs. Orix Auto Infrastructure Servcies Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri Amit Shukla, Jm & Shri Ashwani Taneja, Am Acit-14(2)(2), Mumbai Vs. M/S Orix Auto Infrastructure Services Ltd., Plot No. 904, Marol Co-Op Industrial Estate Andheri-Kurla Road, Andheri– East, Mumbai – 400 059 Pan/Gir No. Aaaco2563P Appellant) .. Respondent)

…on for the use of software for less than 180 days. 7. After hearing both the parties, we find that the order of learned CIT(A) is in consonance with the various judicial precedence including that of the ITAT Special Bench in the case of Amway Ltd, reported in 111 ITD 112. Accordingly the order of CIT(A) is upheld. 8. Regarding the issue raised in ground No.3, whether the rate of depreciation on printer and scanner should be taken at 15% or has to be taken as part of computer so that the rate of depreciation 6 M/s.Orix Infrastructure Services Ltd., applicable would be 60%, the brief facts of the issue are that a…

First Advantage P.Ltd, Mumbai vs. Addl CIT RG 9(1), Mumbai

In the result, the assessee’s appeal for A

Bench: Shri Jason P. Boaz & Shri Sandeep Gosaindcit, Range 9(1) M/S. First Advantage P. Ltd. Room No. 223 1St Floor, Interface Bldg. No. 7 Vs. Àayakar Bhavan, M.K. Road Link Road, Malad (W) Mumbai 400020 Mumbai 400064 Pan - Aaacq0706E Appellant Respondent

…ssessee’s claim that the expenditure on software licence fees as being revenue in nature following the decision of the Hon'ble Bombay High Court in Raychem RPG Ltd. (2012) 346 ITR 138 (Bom) and of the Special Bench of the ITAT Delhi in Amway India Enterprises 111 ITD 112 (SB) (Del.). At paras 8 and 9 of its order of A.Y. 2010-11 the Coordinate Bench (supra) held as under: - “8. In keeping with the tests as laid down by the Special Bench of the ITAT, in the case of CIT vs. Amway India Enterprises, 111 ITD 112[SB] (Delhi), three tests have to be met in order to pass the expenditure incurred on account of software…

First Advantage P.Ltd, Mumbai vs. Addl CIT RG 9(1), Mumbai

In the result, the assessee’s appeal for A

Bench: Shri Jason P. Boaz & Shri Sandeep Gosaindcit, Range 9(1) M/S. First Advantage P. Ltd. Room No. 223 1St Floor, Interface Bldg. No. 7 Vs. Àayakar Bhavan, M.K. Road Link Road, Malad (W) Mumbai 400020 Mumbai 400064 Pan - Aaacq0706E Appellant Respondent

…ssessee’s claim that the expenditure on software licence fees as being revenue in nature following the decision of the Hon'ble Bombay High Court in Raychem RPG Ltd. (2012) 346 ITR 138 (Bom) and of the Special Bench of the ITAT Delhi in Amway India Enterprises 111 ITD 112 (SB) (Del.). At paras 8 and 9 of its order of A.Y. 2010-11 the Coordinate Bench (supra) held as under: - “8. In keeping with the tests as laid down by the Special Bench of the ITAT, in the case of CIT vs. Amway India Enterprises, 111 ITD 112[SB] (Delhi), three tests have to be met in order to pass the expenditure incurred on account of software…

D.C.I.T.9(1), Mumbai vs. First Advantage Pvt. Ltd., Mumbai

In the result, the assessee’s appeal for A

Bench: Shri Jason P. Boaz & Shri Sandeep Gosaindcit, Range 9(1) M/S. First Advantage P. Ltd. Room No. 223 1St Floor, Interface Bldg. No. 7 Vs. Àayakar Bhavan, M.K. Road Link Road, Malad (W) Mumbai 400020 Mumbai 400064 Pan - Aaacq0706E Appellant Respondent

…ssessee’s claim that the expenditure on software licence fees as being revenue in nature following the decision of the Hon'ble Bombay High Court in Raychem RPG Ltd. (2012) 346 ITR 138 (Bom) and of the Special Bench of the ITAT Delhi in Amway India Enterprises 111 ITD 112 (SB) (Del.). At paras 8 and 9 of its order of A.Y. 2010-11 the Coordinate Bench (supra) held as under: - “8. In keeping with the tests as laid down by the Special Bench of the ITAT, in the case of CIT vs. Amway India Enterprises, 111 ITD 112[SB] (Delhi), three tests have to be met in order to pass the expenditure incurred on account of software…

3I Infotech Ltd, Navi Mumbai vs. Asst CIT 10(3), Mumbai

In the result, appeal of the assessee is allowed

…g the business of the assessee, it must be regarded as an integral part of the profit-making process. In such a case, it must be held to be a revenue expenditure. Reliance was also placed on the decision of Special Bench in the case of Amway Enterprises Ltd., 111 ITD 112. 9. It is clear from the above judicial pronouncements that allowing or disallowing software expenditure as revenue is a debatable issue, therefore, no penalty can be imposed merely for the disallowance of the assessee’s claim. 10. The Hon’ble Supreme Court in the case of Reliance Petroproducts Pvt. Ltd.(SLP(C) No.27161 of 2008 (SC), held as unde…