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2013 (12) TMI 11 - HC - Income TaxMedia cost for import of software - Capital expenditure or revenue - Software used for duplication and licensing - Held that:- The appellant was granted non-exclusive non-assignable right and authority to duplicate on appropriate carrier media software products - The appellant could enter into enforceable sub-licensing and services agreement in the prescribed form with third parties users - The holding company retained ownership of the copyright in the software and all associated and applicable intellectual property rights in the products. Following CIT versus IAEC Pumps limited [1997 (4) TMI 14 - SUPREME Court] - Payment towards royalty was revenue expenditure and was allowable after observing that the licence for use of software. The assessee had been only allowed use and there was no transfer of licence - Following CIT v. Sharda Motors Industrial Ltd [2009 (9) TMI 159 - DELHI HIGH COURT] - Depreciation claim in respect of intangible assets would arise only when it is first determined that the expenditure was capital in nature - Decided in favour of assessee.
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