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Income Tax - Highlights / Catch Notes

Home Highlights November 2016 Year 2016 This

Expenses incurred on up-gradation of software do not result into ...

Income Tax

November 24, 2016

Expenses incurred on up-gradation of software do not result into acquisition of any asset nor acquisition of enduring benefits as software become obsolete very quickly - allowed as revenue expenditure - AT

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  3. Nature of expenses - Expenses incurred on Enterprise Resource Planning (“ERP”) and software expenses - revenue or capital expenditure - in today’s fast changing...

  4. Software expenditure having enduring benefit of not more than a year is revenue expenditure

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  6. Expense incurred upon construction of the drain for release of effluents have conferred benefit of an enduring nature upon the assessee - held as capital expenditure and...

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  8. Expenditure incurred on Antivirus software and switches treated as capital expenditure eligible for depreciation @ 60% - there is no acquisition of any capital asset...

  9. The payment for application software, though there is an enduring benefit, does not result in acquisition of any capital asset and it merely enhances the productivity or...

  10. Software expenses - capital expenditure OR revenue expenditure - software having more than 2 years life - CIT(A) has held that expenditure on software for billet heater...

 

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