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2020 (7) TMI 648 - HC - Income TaxNature of expenditure - expenses on use of computer software - revenue or capital expenditure - HELD THAT:- Since the amount is paid on the basis of actual use of software and not for acquisition of software, there was no question of treating the said expenses as capital expenditure. Therefore, Tribunal held that the authorities below had wrongly held the software payment to be capital expenditure in nature and accordingly upheld the stand taken by the assessee directing the Assessing Officer to treat the software expenses as revenue expenditure. While holding so, the Tribunal considered the views given by the Dispute Resolution Panel (DRP) as well as of the Special Bench decision of the Tribunal in the case of Amway India Enterprises Vs. DCIT [2008 (2) TMI 454 - ITAT DELHI-C]. There is no error or infirmity in the conclusions reached by the Tribunal - No substantial question of law. Expenses pertains to legal expenses in connection with structuring of the transaction and related aspects - HELD THAT:- Tribunal has taken the view that merely because the transaction in question is a capital asset, the legal expenses incurred for the same will not ipso facto become capital expenditure. While taking the above view, Tribunal referred to a decision of the Madras High Court in the case of CIT Vs. Bush Boake Allen India Ltd. [1981 (10) TMI 32 - MADRAS HIGH COURT] in which followed the decision of India Cements Ltd. Vs. CIT [1965 (12) TMI 22 - SUPREME COURT]. No error or infirmity in the view taken by the Tribunal and no question of law arises therefrom.
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