Sponsored
    Follow Us:

Case Law Details

Case Name : Deputy Commissioner of Income Tax Vs M/s Edelweiss Capital Ltd. (ITAT Mumbai)
Appeal Number : I T A No: 3971/Mum/2009
Date of Judgement/Order : 15/02/2011
Related Assessment Year : 2005- 06
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

In the present case, we are of the opinion that even if the websites had materialized, the expenditure could not have been viewed as capital expenditure because the website is put up for the purposes of day-to-day running of the business and even if one were to view that some enduring benefit is obtained by the assessee, the benefit cannot be said to accrue to the assessee in the capital field. A website is something where full information about the assessee’s business is given and it helps the assessee’s customers in dealing with it. A website constantly needs updating, otherwise it may become obsolete. It helps in the smooth and efficient running of the day-to-day business. The expenditure would have been allowable as revenue expenditure; as a corollary, when the website did not materialize, the amounts advanced to the companies who were engaged to develop the websites, when they became irrecoverable, can be written off and claimed as loss incidental to the business. The loss is thus allowable as business loss in terms of section 28 of the Act. We accordingly uphold the assessee’s alternative plea.

Deputy Commissioner of Income Tax Vs M/s Edelweiss Capital Ltd.

I T A No: 3971/Mum/2009 (Assessment Year: 2005- 06)

Income Tax Appellate Tribunal

O R D E R

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

0 Comments

  1. web developer melbourne says:

    { Thanks for finally talking about >Website development expense is revenue expenditure and amount advanced for it if become unrecoverable is allowable as

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031