COMMISSIONER OF INCOME TAX Vs. K AND CO

JUDGEMENT

(1.) HAVING heard learned counsel for the parties, we are of the view that the order of the Tribunal does involve substantial questions of law.

(2.) ADMIT .

(3.) INSOFAR as proposed question No. (c) is concerned, the Tribunal has merely upheld the order passed by the CIT(A) remanding the matter back to the AO for reconsideration of the question of depreciation in case the assessee produces the relevant documents in support of the claim. In our opinion, the said direction does not give rise to a question of law, much less a substantial question of law. Similarly, insofar as the question of treating the expenditure incurred by the assessee on maintenance of computer and their upgradation is concerned, we are in agreement with the Tribunal that the same is in the nature of revenue expenditure. It is pertinent to note that the AO, while granting depreciation @ 33.33 per cent on the software, had himself observed that the life of the software was three years. The percentage of such allowance had been fixed by the AO on his own. In our opinion no substantial question of law arises from this issue as well.