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2014 (1) TMI 879 - AT - Income TaxNature of Expenses – Capital OR Revenue – Software expenses incurred – Held that:- In assessee’s own case it has been held that the software expenses incurred were in the nature of revenue expenditure - The CIT(Appeals) allowed the appeal filed by the assessee - No material has been brought on record or before us by the Revenue to show that the decision of the Tribunal is either modified or reversed by any higher Court – Decided against Revenue. Software expenditure - Deduction u/s 80HHC – Held that:- The assessee has acquired the licence to use the software and the licence is valid only for one year, it may be useful to the assessee for various functions like sales, finance, logistics operations and use of ERP system and it may confer certain benefits to the assessee but it cannot be said that there is enduring benefit to the assessee – The decision in CIT v. Raychem RPG Ltd. [2011 (7) TMI 953 - Bombay High Court ] followed - the expenses incurred by the assessee to acquire the software licence is of revenue expenses – Decided against Revenue.
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