ACIT, Corporate Circle-1(2), Bhubaneswar V. M/s. Orissa Hydro Power Corporation Ltd., Bhubaneswar

ITA 297/CTK/2016

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4661 (ITAT-CUTTACK)
• Duration Of Justice: 5 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 27-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Revenue expenditure; Capital expenditure

Judgement Text

आयकर अपीऱीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री अरुण खोड़पऩया ऱेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.297/CTK/2016 (नििाारण वषा / Assessment Year :2009-2010) DCIT, Circle-1(1), Bhubaneswar ..................Revenue Versus M/s Odisha Hydro Power Corporation Ltd., OSPHW C Building, Bhoi Nagar, Vani Vihar, Bhubaneswar-751002 P AN No. AAACO 2575 P ................. Assessee AND ITA No.281/CTK/2016 (नििाारण वषा / Assessment Year :2009-2010) M/s Odisha Hydro Power Corporation Ltd., OSPHW C Building, Bhoi Nagar, Vani Vihar, Bhubaneswar-751002 P AN No. AAACO 2575 P ................. Assessee Versus DCIT, Circle-1(1), Bhubaneswar ..................Revenue Shri Dillip Kumar Mohanty/Pradyumna Kumar Sahu/Sunima Panda, ARs for the assessee Shri M.K.Gautam, CIT-DR for the Revenue Date of Hearing : 22/06/2022 Date of Pronouncement : 22/06/2022 आदेश / O R D E R Per Bench : These are the cross appeals filed by the revenue and assessee against the order of the ld. CIT(A)-1, Bhubaneswar, dated 26.05.2016 passed in I.T.Appeal No.0356/14-15 for the assessment year 2009-2010. ITA Nos.297&281/CTK/2016 2 2. It was submitted by the Id. AR that the AO had disallowed the expenditure relating to software expenditure. It was the submission that the expenditure was revenue in nature and consequently the issue is covered by the decision the Hon'ble Delhi High Court in the case of CIT Vs. Amway India Enterprises, reported in 346 ITR 341 (Delhi). 3. It was submitted by the Id. CIT-DR that the revenue is in appeal against the action of Id. CIT(A) in deleting the addition of Rs.34,81,882/- in respect of software expenditure capitalised by the AO on which depreciation had been granted @60%. It was the submission that the software gives enduring benefit to the assessee, therefore, the same is liable to be treated as capital expenditure. 4. We have considered rival submissions. 5. A perusal of the decision of Hon'ble Delhi High Court in the case of Amway India Enterprises(supra), shows that the software expenses are to be treated as revenue expenditures. In these circumstances, following the principle of law laid down by the Hon'ble Delhi High Court in the case of Amway India Enterprises (supra), software expenses incurred by the assessee is directed to be held as revenue expenditure. Consequently, the appeal of the assessee is allowed and the appeal of the revenue stands dismissed. ITA Nos.297&281/CTK/2016 3 6. In the result, appeal of the assessee is allowed and the appeal of the revenue stands dismissed. Order dictated and pronounced in the open court on 22/06/2022. Sd/- (अरुण खोड़पऩया) (ARUN KHODPIA) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 22/06/2022 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : आदेशाि ु सार/ BY ORDER, (Assistant Registrar) आयकर अपीऱीय अधिकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. पिभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यापऩत प्रयत //True Copy//