Similarly, in Commissioner of Income Tax v. G.E, Capital Services Limited

HCL TECHNOLOGIES LTD.,NEW DELHI vs. ACIT, NEW DELHI

The appeal is allowed as indicated above

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

…enance of computer and their upgrada"on including development of so"ware was in the nature of revenue expenditure and did not give rise to any substan"al ques"on of law. Reliance is also placed in the case of CIT vs GE Capital Services Ltd reported in (2008) 300 ITR 420 (Del) wherein purchase of MS Office so"ware was held to be of revenue nature since it was not custom built and would have required altera"ons. The above expenses are to be regarded as incurred on revenue field as per the test laid down by the Special Bench of Tribunal in the case of Amway India Enterprises: 111 ITD 112 (Del) (SB) – affirmed by D…

HCL TECHNOLOGIES LTD,NEW DELHI vs. ACIT, NEW DELHI

The appeal is allowed as indicated above

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

…enance of computer and their upgrada"on including development of so"ware was in the nature of revenue expenditure and did not give rise to any substan"al ques"on of law. Reliance is also placed in the case of CIT vs GE Capital Services Ltd reported in (2008) 300 ITR 420 (Del) wherein purchase of MS Office so"ware was held to be of revenue nature since it was not custom built and would have required altera"ons. The above expenses are to be regarded as incurred on revenue field as per the test laid down by the Special Bench of Tribunal in the case of Amway India Enterprises: 111 ITD 112 (Del) (SB) – affirmed by D…

TRIUNE ENERGY PVT. LTD.,NEW DELHI vs. ACIT CIRCLE-7(1), NEW DELHI

The appeal stands allowed

Bench: Shri Anil Chaturvedi & Shri Anubhav Sharmaassessment Year: 2008-09

…evenue. Reliance is rightly place by Ld. Counsel on following judgement; - CIT v. Asahi India Safety Glass Ltd. 346 ITR 329 (Del); - CIT v. Amway India Enterprises 346 ITR 341 (Del); - CIT v. ACL Wireless Ltd. 261 ITR 210 (Del); - CIT v. G.E. Capital Services 300 ITR 420 (Del); - CIT v. Raychem RPG Ltd. 346 ITR 138 (Bom). 8.3. It is also relevant to mention that claim was allowed in A.Y. 2007-08 U/s 143(3) and in AY 2009-10 the same has been deleted at the stage of learned first appellate authority. In the light of aforesaid, the ground is sustained. 10 9. As a consequence of aforesaid determination of the gro…

TRIVENI ENGINEERING & INDUSTRIES LTD.,NOIDA vs. ACIT, NEW DELHI

Bench: Shri R. K. Panda & Ms Suchitra Kamble

…their upgradation including development of software was in the nature of revenue expenditure and did not give rise to any substantial question of law. The Ld. AR relied on the decision of Hon’ble Delhi High Court in the case of CIT vs GE Capital Services Ltd. 300 ITR 420 (Del) wherein purchase of MS Office software was held to be of revenue nature since it was not custom built and would have required alterations. The Ld. AR also relied upon the decision of the Hon’ble Delhi High Court in the case of CIT vs Asahi India Safety Glass Ltd. 346 ITR 329. Revenue’s appeal against the aforesaid decision was dismissed by…

TRIVENI ENGINEERING & INDUSTRIES LTD.,NOIDA vs. ACIT, NEW DELHI

Bench: Shri R. K. Panda & Ms Suchitra Kamble

…their upgradation including development of software was in the nature of revenue expenditure and did not give rise to any substantial question of law. The Ld. AR relied on the decision of Hon’ble Delhi High Court in the case of CIT vs GE Capital Services Ltd. 300 ITR 420 (Del) wherein purchase of MS Office software was held to be of revenue nature since it was not custom built and would have required alterations. The Ld. AR also relied upon the decision of the Hon’ble Delhi High Court in the case of CIT vs Asahi India Safety Glass Ltd. 346 ITR 329. Revenue’s appeal against the aforesaid decision was dismissed by…

TRIVENI ENGINEERING & INDUSTRIES LTD.,NOIDA vs. ACIT, NEW DELHI

Bench: Shri R. K. Panda & Ms Suchitra Kamble

…their upgradation including development of software was in the nature of revenue expenditure and did not give rise to any substantial question of law. The Ld. AR relied on the decision of Hon’ble Delhi High Court in the case of CIT vs GE Capital Services Ltd. 300 ITR 420 (Del) wherein purchase of MS Office software was held to be of revenue nature since it was not custom built and would have required alterations. The Ld. AR also relied upon the decision of the Hon’ble Delhi High Court in the case of CIT vs Asahi India Safety Glass Ltd. 346 ITR 329. Revenue’s appeal against the aforesaid decision was dismissed by…

TRIVENI ENGINEERING & INDUSTRIES LTD.,NOIDA vs. ACIT, NEW DELHI

Bench: Shri R. K. Panda & Ms Suchitra Kamble

…their upgradation including development of software was in the nature of revenue expenditure and did not give rise to any substantial question of law. The Ld. AR relied on the decision of Hon’ble Delhi High Court in the case of CIT vs GE Capital Services Ltd. 300 ITR 420 (Del) wherein purchase of MS Office software was held to be of revenue nature since it was not custom built and would have required alterations. The Ld. AR also relied upon the decision of the Hon’ble Delhi High Court in the case of CIT vs Asahi India Safety Glass Ltd. 346 ITR 329. Revenue’s appeal against the aforesaid decision was dismissed by…

TRIVENI ENGINEERING & INDUSTRIES LTD.,NOIDA vs. ADDL. CIT, NEW DELHI

Bench: Shri R. K. Panda & Ms Suchitra Kamble

…their upgradation including development of software was in the nature of revenue expenditure and did not give rise to any substantial question of law. The Ld. AR relied on the decision of Hon’ble Delhi High Court in the case of CIT vs GE Capital Services Ltd. 300 ITR 420 (Del) wherein purchase of MS Office software was held to be of revenue nature since it was not custom built and would have required alterations. The Ld. AR also relied upon the decision of the Hon’ble Delhi High Court in the case of CIT vs Asahi India Safety Glass Ltd. 346 ITR 329. Revenue’s appeal against the aforesaid decision was dismissed by…

DCIT, NEW DELHI vs. M/S CADENCE DESIGN SYSTEMS (INDIA) PVT. LTD., NEW DELHI

In the result, the appeals filed by the Revenue both the years are allowed for statistical purposes and the CO filed by the assessee is dismissed

Bench: Shri R.K. Panda & Shri Amit Shukla

…radation and renewal of the existing software. The original purchase of the software was capitalized by the assessee. Relying on various decisions including the decision of the Hon’ble Delhi High Court in the case of GE Capital Services India Ld., reported in 300 ITR 420, it was argued that the same is revenue in nature. 21. Based on the arguments advanced by the assessee, the ld.CIT(A) directed the AO to allow the expenses as revenue in nature and, thereby, deleted the addition by observing as under:- CO No.202/Del/2012 “5.2. Reasons for decision: The software up-gradation expenses incurred by the appellant was…

ACIT, GURGAON vs. M/S. DLF PROJECTS LTD., GURGAON

In the result, ITA Nos.4960/Del/2015 and 2595/Del/2016 filed by the assessee for assessment years 2010-11 and 2011-12 are allowed and ITA

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2010-11 Assessment Year : 2011-12 Dlf Projects Ltd., Vs Addl.Cit, 3Rd Floor, Shopping Mall, Range-1, Arjun Marg, Gurgaon. Clf City Phase-1, Gurgaon. Pan: Aaccd3093R Assessment Year: 2010-11 Acit, Vs. Dlf Projects Ltd., 3Rd Floor, Shopping Mall, Circle-1(1), Gurgaon. Arjun Marg, Clf City Phase-1, Gurgaon. Pan: Aaccd3093R (Appellants) (Respondents) Assessee By : Shri R.S. Singhvi & Shri Satyajit Goel, Ca Deptt. By : Shri Saras Kumar, Sr. Dr Date Of Hearing : 28.11.2019 Date Of Pronouncement : 10.12.2019 Order Per R.K. Panda, Am:

…view, the finding and reasoning of the Ld. CIT (Appeals) that software expenses are of revenue nature is well founded and in consonance with decision of the Hon'ble Jurisdictional High Court in the case of CIT v. G.E. Capital Services Ltd. reported in [2008] 300 ITR 420 (Del) which has been followed by the Delhi Tribunal in the case of the sister- concern of the respondent/assessee DLF Home Developers Ltd. (supra). Accordingly, we hereby confirm the order of the Ld. CIT (Appeals) and uphold the deletion of disallowance of software expenses. Thus ground no. 4 of the revenue's appeal stands dismissed.” & ITA No.25…

DLF PROJECTS LTD.,GURGAON vs. ADDL. CIT, GURGAON

In the result, ITA Nos.4960/Del/2015 and 2595/Del/2016 filed by the assessee for assessment years 2010-11 and 2011-12 are allowed and ITA

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2010-11 Assessment Year : 2011-12 Dlf Projects Ltd., Vs Addl.Cit, 3Rd Floor, Shopping Mall, Range-1, Arjun Marg, Gurgaon. Clf City Phase-1, Gurgaon. Pan: Aaccd3093R Assessment Year: 2010-11 Acit, Vs. Dlf Projects Ltd., 3Rd Floor, Shopping Mall, Circle-1(1), Gurgaon. Arjun Marg, Clf City Phase-1, Gurgaon. Pan: Aaccd3093R (Appellants) (Respondents) Assessee By : Shri R.S. Singhvi & Shri Satyajit Goel, Ca Deptt. By : Shri Saras Kumar, Sr. Dr Date Of Hearing : 28.11.2019 Date Of Pronouncement : 10.12.2019 Order Per R.K. Panda, Am:

…view, the finding and reasoning of the Ld. CIT (Appeals) that software expenses are of revenue nature is well founded and in consonance with decision of the Hon'ble Jurisdictional High Court in the case of CIT v. G.E. Capital Services Ltd. reported in [2008] 300 ITR 420 (Del) which has been followed by the Delhi Tribunal in the case of the sister- concern of the respondent/assessee DLF Home Developers Ltd. (supra). Accordingly, we hereby confirm the order of the Ld. CIT (Appeals) and uphold the deletion of disallowance of software expenses. Thus ground no. 4 of the revenue's appeal stands dismissed.” & ITA No.25…

DCIT, GURGAON vs. M/S. DLF PROJECTS LTD., GURGAON

Appeal stands dismissed

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year: 2009-10 Dcit, Dlf Projects Ltd. Circle 1(1), (Formerly Dt Projects Ltd.), Vs Gurgaon. 3Rd Floor, Shopping Mall, Arjun Nagar, Dlf City, Phase-I, Gurgaon. (Pan: Aaccd3093R) (Appellant) (Respondent)

…ccepted the claim of AMC as revenue expenditure. Reference was also made to the decision of the Delhi Bench of the ITAT in the case of sister concern DLF Home Developers Ltd. vs. DCIT (ITA NO. 4757/Del/12 and the judgments of the Hon’ble reported in [2008] 300 ITR 420 (Del) and CIT vs. Amway India Enterprises reported in (2012) 346 ITR 341 (Delhi). 6.0 We have considered the rival submissions and have also gone through the orders passed by lower authorities. As far as ground no 1 of the appeal is concerned, it is seen that the Ld. first appellate authority has deleted the disallowance of project managemen…

DCIT, NEW DELHI vs. M/S. ORIENTAL BANK OF COMMERCE, GURGAON

In the result, the appeal of the assessee is dismissed and that of the Revenue is partly allowed for statistical purposes, as indicated above

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…software Rs. 10,91,10,107/-including the licenses are to be treated as capital in nature. Further, the case laws relied upon by the A/R viz. Amway India Enterprises Vs. DCIT [2008] 301 ITR (AT.) 0001 ITAT (Del.) (SB), CIT Vs. G.R Capital Services Ltd. [2008] 300 ITR 420 (Delhi), Business Information Processing Services Vs. ACIT [1999] 239 ITR (AT) 19 ITAT (Jai) and CIT Vs. Southern Roadways Ltd [2008] 304 ITR 84 (Mad.) are not of any ITA No. 4566 & 5200/Del./2014 13 help because all the decisions are pertaining to assessment years prior to amendment brought in w.e.f. April 1, 2003 where computer software was al…

ORIENTAL BANK OF COMMERCE,GURGAON vs. ADDL. CIT, NEW DELHI

In the result, the appeal of the assessee is dismissed and that of the Revenue is partly allowed for statistical purposes, as indicated above

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…software Rs. 10,91,10,107/-including the licenses are to be treated as capital in nature. Further, the case laws relied upon by the A/R viz. Amway India Enterprises Vs. DCIT [2008] 301 ITR (AT.) 0001 ITAT (Del.) (SB), CIT Vs. G.R Capital Services Ltd. [2008] 300 ITR 420 (Delhi), Business Information Processing Services Vs. ACIT [1999] 239 ITR (AT) 19 ITAT (Jai) and CIT Vs. Southern Roadways Ltd [2008] 304 ITR 84 (Mad.) are not of any ITA No. 4566 & 5200/Del./2014 13 help because all the decisions are pertaining to assessment years prior to amendment brought in w.e.f. April 1, 2003 where computer software was al…

MARATHON ELECTRIC INDIA PVT. LTD.,HARYANA vs. DCIT, FARIDABAD

In the result, the appeal is allowed

Bench: Shri R.S. Syal & Ms Suchitra Kambleassessment Year : 2005-06

…n the first appeal. 7. Here again, we find that the Revenue authorities were not justified in imposing and confirming penalty in respect of software expenses incurred by the assessee. The Hon’ble Delhi High Court in CIT vs. GE Capital Services Ltd. (2008) 300 ITR 420 (Del), upheld the view taken by the Tribunal in treating the expenses incurred on purchase of computer software as revenue expenditure. There is a thin line between software expenses falling on the revenue or the capital side. Taking into expenses as revenue, cannot call for any imposition of penalty. We, therefore, overturn the impugned order…

M/S. ORIENTAL BANK OF COMMERCE,GURGAON vs. ADDL.CIT, NEW DELHI

In the result, both the appeals of the assessee and both the appeals of

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH ‘E.’ NEW DELHI BEFORE : SHRI I.C. SUDHIR, JUDICIAL MEMBER & SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA No. 6795 & 6796/Del./2013 Asstt. Year : 2008-09 & 2009-10 Oriental Bank of Commerce, vs. Addl. CIT, Range-13, Central Accounts Office, Plot No. 5, New Delhi. Sector-32, Institutional Area, Gurgaon. (PAN: AAACO 0191M). ITA No. 242 & 243/Del./2014 Asstt. Year : 2008-09 & 2009-10 Addl. CIT, Range-13, vs. Oriental Bank of Commerce, New Delhi. Central Accounts Office, Plot No. 5, Sector-32, Institutional Area, Gurgaon. (Appellant) (Respondent) Assessee by : Sh. KVS…