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TMI Blog2014 (1) TMI 879X X X X Extracts X X X X X X X X Extracts X X X X ..... aged in the manufacture, marketing and service of automotive controls. The assessee had filed its return declaring income of Rs.10,06,52,970/- on 30.10.2007 and the was processed under section 143(1) of the Income Tax Act. The case was selected for scrutiny and notice under section 143(2) was issued on 16.09.2008. Assessment under section 143(3) of the Act was completed on 31.12.2010 determining assessee's total income of Rs.11,25,90,963/- by capitalizing software expenses of Rs.3,01,67,907/-. During the year under consideration, the assessee company has debited software expenses of Rs.3,01,67,907/- in the profit and loss account. The assessee company has claimed the above said expenses as revenue expenses. However, the Assessing Officer ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or reversed by any higher Court. As such, we find no infirmity in the order passed by the ld. CIT(Appeals). Therefore, we dismiss the appeal filed by the Revenue. I.T.A. No. 370/Mds/2013 [A.Y. 2008-09] 8. For the assessment year under consideration, both parties have submitted that except expenditure incurred towards software licence of Rs.58,92,163/-, the remaining software expenditures [i.e. consumables & others, internet, IT help desk charges & servicing] incurred by the assessee are similar as incurred in the assessment year 2007-08. Since, we have decided the said expenditures as revenue expenditure hereinabove for the assessment year 2007-08 by following Tribunal's order in assessee's own case for the assessment year 2005-06 in I.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer. 12. On the other hand, the ld. Counsel for the assessee has submitted that so far as other expenses are concerned, the expenditure is in the nature of revenue expenditure and covered by the decision of the Hon'ble Bombay High Court in the case of CIT v. Raychem RPG Ltd. 346 ITR 138 and also the decision of Hon'ble Delhi High Court in the case of CIT v. Asahi India Safety Glass Ltd. 2011 - TMI - 206589. 13. We have heard both sides, perused the materials on record and gone through the orders of authorities below. The assessee has incurred expenses towards software licence of Rs.58,92,163/- and claimed the same as revenue expenditure. It was submitted before the Assessing Officer that the licence is valid for a period of one y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee 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. Therefore, respectfully following the decision of the Hon'ble Bombay High Court in the case of CIT v. Raychem RPG Ltd. (supra) and taking into consideration of the facts of the case, we are of the considered opinion that the expenses incurred by the assessee to acquire the software licence is of revenue expenses. Accordingly, we dismiss the appeal filed by the Revenue. 15. In the result, both the appeals filed by the Revenue for the assessment years 2007-08 and 2008-09 are dismissed. Order pronounced on Friday, the 28th of June, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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