Infosys BPM Ltd. Vs DCIT (ITAT Bangalore)

Last updated: 18 December 2020

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This case involves cross-appeals between Infosys BPM Ltd. and the Deputy Commissioner of Income-tax (DCIT) at the ITAT Bangalore for the assessment year 2011-12. The primary issues concern the disallowance of provisions for software expenses and software expenses treated as capital in nature. The revenue's appeal focuses on a deduction allowed under Section 10A and the CIT(A)'s authority to remit the software expense issue back to the Assessing Officer.

Court :
ITAT Bangalore

Brief :
These cross appeals are directed against the order dated 04- 01-2018 passed by Ld CIT(A)-3, Bengaluru and they relate to the assessment year 2011-12.

Citation :
ITA No.491/Bang/2018

IN THE INCOME TAX APPELLATE TRIBUNAL
“C’’BENCH: BANGALORE

BEFORE SHRI GEORGE GEORGE K., JUDICIAL
MEMBERAND
SHRI B.R. BASKARAN, ACCOUNTANT MEMBER

ITA No.491/Bang/2018
AssessmentYear:2011-12

Infosys BPM Ltd.
Electronic City
Hosur Road
Bengaluru
PAN NO :AACCP4478N
APPELLANT

Vs.

Deputy Commissioner of
Income-tax
Circle-3(1)(1)
Bangalore
RESPONDENT

IT(TP)A No.1156/Bang/2018
Assessment Year: 2011-12

Deputy Commissioner of Incometax
Circle-3(1)(1)
Bangalore
APPELLANT

Vs.

Infosys BPM Ltd.
Electronic City
Hosur Road
Bengaluru
RESPONDENT

Appellant by : Shri Padamchand Khincha, A.R.
Respondent by : Shri Mathivanam M. D.R.
Date of Hearing : 10.12.2020
Date of Pronouncement : 11.12.2020

O R D E R

PERB.R. BASKARAN, ACCOUNTANT MEMBER:

These cross appeals are directed against the order dated 04- 01-2018 passed by Ld CIT(A)-3, Bengaluru and they relate to the assessment year 2011-12.

2. The assessee is in appeal before us on the following issues:-
(a) Disallowance of Provision for Software expenses –Rs.3,89,30,461/-
(b) Disallowance of Software expenses u/s 40(a)(i) of the Act –Rs.1,35,82,093/-
(c) Disallowance of software expenses treating the same as capital in nature – Rs.13,80,31,912/-
(d) Incorrect allowance of TDS credit.

3. The revenue is in appeal before us on the following issues:-
(a) Deduction allowed u/s 10A of the Act
(b) Whether Ld CIT(A) has power to remit the issue of disallowance of software expenses treating it as Capital expenditure to the file of AO?

To know more in details find the attachment file

FAQ :

The appeal primarily concerns the disallowance of software expenses and related issues for the assessment year 2011-12.

Infosys BPM Ltd. is appealing the disallowance of provisions for software expenses, software expenses under Section 40(a)(i), and software expenses treated as capital in nature.

The revenue is appealing the deduction allowed under Section 10A of the Act and the authority of the CIT(A) to remit the issue of software expenses being capital expenditure back to the Assessing Officer.

This ruling pertains to the assessment year 2011-12.