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2018 (5) TMI 1700 - HC - Income TaxDisallowance of software expense treating it as capital expense - nature of expenditure - revenue or capital expenditure - Held that:- If the advantage consists merely in facilitating the assessee's trading operations or enabling the management and conduct of the assessee's business to be carried on more efficiently or more profitably while leaving the fixed capital untouched the expenditure would be on revenue account, even though the advantage may endure for an indefinite future - thus the test of enduring benefit is, therefore, not a certain or conclusive test and it cannot be applied blindly - fast changing technology, software has to be regularly updated so as to keep pace with the changing technology - view taken by the Tribunal that the expenditure is on Revenue account is an entirely possible view - Decided in favor of assessee. Whether the expenses towards consultancy fees, video shooting for training etc in respect of occupation, health and safety measure for the benefit of its employees are revenue in nature - Held that:- The test of one time payment of payment or not is not the sole test to determine the nature of expenditure - the expense does not add to or expands the profit making apparatus of the assessee - thus revenue in nature - Decided in favor of assessee. Appeal admitted on the substantial question of law at No. (3) - Whether on the facts and circumstances of the case and in law the Tribunal is justified in upholding the decision of CIT (A) in deleting the disallowance u/ s 40a(ia) of the Act ?
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