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Income Tax - Highlights / Catch Notes

Home Highlights October 2014 Year 2014 This

The payment for application software, though there is an ...

Income Tax

October 3, 2014

The payment for application software, though there is an enduring benefit, does not result in acquisition of any capital asset and it merely enhances the productivity or efficiency and has to be treated as revenue expenditure - HC

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  2. E-connectivity charges are revenue in nature as they do not result either in the acquisition of software by the assessee or in any enduring benefit to the assessee

  3. Software consumable expenses – The expenditure was incurred for application software and not for system software – The software was not of enduring nature and would...

  4. Software expenditure having enduring benefit of not more than a year is revenue expenditure

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  6. Quota written off - Licence / quota which was for a limited period of three years - though assessee had obtained enduring benefit, held as revenue in nature - AT

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  9. Software expenses - capital expenditure OR revenue expenditure - software having more than 2 years life - CIT(A) has held that expenditure on software for billet heater...

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