Court held that ,(i)he allowability of commission paid to Mr ‘M’, an Iraqi agent, on sale of fork lift trucks and spares and whether such person is an agent or not is a pure question of fact and the Tribunal’s finding of fact on this cannot be interfered (ii) Computer software is a capital asset and eligible for depreciation, however, any payment made for drawings and designs in relation to such computer software cannot be considered as capital asset. (ITA. No 504 of 2007 dt. 03-05-2018)
PCIT .v. TIL Ltd (2018) 255 Taxman 373 (Cal)(HC)
S. 37(1) : Business expenditure – Sales commission paid to agent in Iraq in relation to sale of trucks and particular person to be treated as allowable business expenditure – Capital or revenue-Drawings and designing charges related to computer software – Cannot be treated as capital asset.