Calcutta High Court
Principal Commissioner Of Income Tax vs M/S. Intelsys Technologies Pvt. Ltd on 16 August, 2016
ORDER SHEET
GA NO.1698 OF 2016
WITH
ITAT NO.193 OF 2016
IN THE HIGH COURT AT CALCUTTA
SPECIAL JURISDICTION(INCOME-TAX)
ORIGINAL SIDE
PRINCIPAL COMMISSIONER OF INCOME TAX, KOLKATA-1, KOLKATA
Versus
M/S. INTELSYS TECHNOLOGIES PVT. LTD.
BEFORE:
The Hon'ble JUSTICE GIRISH CHANDRA GUPTA
The Hon'ble JUSTICE ARINDAM SINHA
Date : 16th August, 2016.
MR.P.DUDHORIA, ADVOCATE FOR APPELLANT
MR.P.P.BISHWAL, MR.ARIF ALI, ADVOCATES FOR RESPONDENT
The Court : The subject matter of challenge is a judgment and order dated 11th December, 2015 by which the Income Tax Appellate Tribunal "B" Bench, Kolkata dismissed an appeal preferred by the revenue registered as ITA No.2287/Kol/2010 pertaining to the assessment year 2006-07. The aggrieved revenue has come up in appeal.
Both the CIT(A) and the learned Tribunal found that the sum of Rs.1,02,39,694/- was spent in purchasing the software which the 2 assessee had wrongly described in its books of account as "software development charges" but on the basis of evidence, the CIT(A) held as follows :-
"The A/R had furnished the relevant records/documents before which shows that the vendors supplied canned softwares to the assessee which was required for the assessee's business. Regarding the existence of a purchase account in which the assessee did not debit the purchase of canned software, I am of the opinion that there is no wrong in debiting the purchase of canned software under the account head "Software Development Charges" which was the policy maintained all through by the assessee. In the circumstances this ground could go in favour of the appellant. The Ground is allowed."
The learned Tribunal agreed with the views expressed by the CIT and it is against this order that the revenue has come up in appeal. Mr.Dudhoria is unable to point out any mistake in point of law. We are, as such, not inclined to admit the appeal, which is accordingly, dismissed.
(GIRISH CHANDRA GUPTA, J.) (ARINDAM SINHA, J.) sb.