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2010 (5) TMI 622 - ITAT, DELHITechnical advisory services and assistance for the designing and development of the software product- Annual Contract and lump-sum consideration - Capital or Revenue Expense? - Held That:- The assessee-company is throughout the year engaged in the business of rendering software services to its clients. Since no capital asset was acquired nor any benefit of enduring nature so as to treat the expenditure as of capital in nature has been acquired by the assessee, and since the assessee has availed of the services of M/s. Derpol Investment Ltd. in the course of carrying on its business of software development and deployment we are of the considered view that the expenditure incurred by the assessee is to be allowed as revenue expenditure irrespective of the fact whether any revenue has been generated from those services or not.
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