TMI Blog2020 (5) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... iate to modify the order. The submission of learned counsel for the assessee that partial modification of the order of stay would be acceptable, the impugned orders are modified making it clear that the observations made herein are not to be treated as findings on merits. Accordingly, the orders are set aside. There would be a stay of demand for the Assessment Year 2017 2018 during the pendency of the appeal filed challenging the order of assessment of the year 2017 -2018, subject to the assessee paying 10% of the demand out of which 5% would be paid within 31.03.2020 and the remaining 5% would be paid in two equal installments in the months of April 2020 and May 2020. - WRIT PETITION No.6171/2020 (T-IT) - - - Dated:- 17-3-2020 - H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form of Guidelines which are not however exhaustive and discretion is to be exercised by noticing the strength of the case made out challenging the assessment order. 6. The petitioner contends that in the present case, the question is as to whether the software licencing fee that has been paid by the assessee is to be treated and allowed as a revenue expenditure? 7. Learned counsel for the petitioner contends that the tenure of software licencing is as per the terms of the commercial agreement, the effective start date for the contract is 21.11.2016 and the end date is 31.03.2017. 8. It is further submitted that on expiry of the end date, unless fresh licence fee is paid, the benefits under the licencing agreement would not be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipal Commissioner of Income Tax, who is to take appropriate decision. 10. It is to be noticed that as contended by learned counsel for the assessee that the question of treating the software licencing fee payable as revenue expenditure is a matter that has been considered and dealt with by this Court in the two judgments referred to above wherein such expenditure has been treated to be revenue expenditure. 11. In light of the discussion as above, the Authority while deciding on the application for stay was required to take note of the judgments passed in an appropriate manner. It is also to be noted that the Guidelines are not exhaustive and discretion that is available to the Assessing Officer or the Authority considering the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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