25 September 2007
Does it matter if the software is not an operating software, but an application software only? Kindly advice. Can it then be treated as Revenue expenditure and claimed in the same year?
25 September 2007
Expenses on development of computer software - Expenses on development of computer software are revenue in nature - BUSINESS INFORMATION PROCESSING SERVICES VS.ASSTT.CIT, (2000) 67 TTJ 131(JP) BUSINESS DISALLOWANCE :: Expenditure incurrecd in developing specified software and programmes at the instance of a particular assessee could be allowed as revenue expenditure - Business Information Procession Servives v. Asstt.CIT [2000] 73 ITD 304(Jp.) Business expenditure -Tribunal having rightly treated the expenditure incurred by the assessee on maintanence of computer and their upgradation including software in the nature of revenue expenditure, no substantial question of law arises.[2003] 181 CTR 378 CIT vs. K.& Co.(Del) Assessment year 1996-97 - Whether expenses on purchase of software for business are purely of revenue nature and Assessing Officer erred in treating 50 per cent of same as capital in nature - Held,yes - Bank of Punjab Ltd. vs. Jt. CIT (Chd. -Trib.). [2002] 122 Taxman 235 " Alembic Chemicals Works Co. Ltd. vs. CIT [1989] 177 ITR 377/ 43 Taxman 312 (SC), it was to be held that software expenses were purely of revenue nature and were to be allowed as a deduction."
CAclubindia
