M/s Soyog Securities P. Ltd, V. The Dy.CIT 4 (1),

ITSSA 117/IND/2008

• Counselvise Citation: [2010] 124 COUNSELVISE.COM (IT) 9279 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 04-05-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-04-2010
• Assessment Year: misc
• Appeal Filed On: 08-07-2008
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJEEV VASNE
• Keywords: Depreciation

Judgement Text

PAGE 1 OF 2 - I.T.(SS)A.NO.117/IND/2008 SUYOG SECURITIES PRIVATE LIMITED, INDORE. IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER PAN NO. : - I.T(SS).A.NO.117/IND/2008 A.Y. : 2001-02 M/S.SUYOG SECURITIES PRIVATE LIMITED, DY. CIT, 30-B, OLD PALASIA, VS 4(1), INDORE. INDORE. APPELLANT RESPONDENT APPELLANT BY : SHRI PRAKASH JAIN, C. A. RESPONDENT BY : SHRI RAJEEV VASNE, CIT DR 28.04.2010 DATE OF HEARING : O R D E R PER V.K. GUPTA, A.M. THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF ORD ER OF THE LD. CIT(A)-II,INDORE, DATED 27.03.2008, FOR THE ASSESSM ENT YEAR 2001-02. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. 3. GROUND NO.2 RELATING TO VALIDITY OF ENHANCEMENT BY THE CIT(A) WAS NOT PRESSED, HENCE, DISMISSED, AS NOT PRESSED. 4. IN GROUND NO.1, THE ISSUE IS REGARDING THE NATURE O F COMPUTER SOFTWARE AND ,CONSEQUENTLY, THE NATURE OF EXPENDITU RE INCURRED FOR THE PAGE 2 OF 2 - I.T.(SS)A.NO.117/IND/2008 SUYOG SECURITIES PRIVATE LIMITED, INDORE. PURPOSE OF ACQUIRING SUCH SOFTWARE I.E. WHETHER IT IS OF CAPITAL NATURE OR REVENUE NATURE. THE LD. CIT(A) HAS TREATED THE SAME AS OF CAPITAL NATURE BY MAKING AN ENHANCEMENT U/S 152(2) OF THE ACT, AND HAS ALLOWED DEPRECIATION THEREON. HOWEVER, THIS ISSUE, IN OUR O PINION, NEEDS TO BE EXAMINED IN THE LIGHT OF GUIDELINES PROVIDED BY THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF AMWAY INDIA ENTERPRISES VS. DY. CIT, AS REPORTED IN (2008)114 TTJ 476. HENCE, WE RESTORE THIS ISSUE TO THE FILE OF LD. CIT(A) TO DECIDE THE SAME AFRESH AFTER TAKING INTO CONSIDERATION THE GUIDELINES GIVEN BY THE SPECIAL BENCH OF THE TRIBU NAL IN THE AFORESAID DECISION. ACCORDINGLY, GROUND NO.1 OF THE ASSESSEE S APPEAL STANDS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STA NDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 4 TH MAY, 2010. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :4 TH MAY, 2010. CPU* 28304