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2013 (12) TMI 1160 - DELHI HIGH COURTProduct development Expenses - Capital or revenue expenditure - Held that:- Following ALEMBIC CHEMICAL WORKS CO. LTD. V. CIT [1989 (3) TMI 5 - SUPREME Court] - The upgradations were required constantly and perpetually - The Assessee had to keep pace with the rapidly changing requirements of the mobile phone users and with other software providers - The expenditure such as new features, upgrades, patches for removing glitches did not bring into existence a new asset but rectified and improved the product being sold - There has to be recurring expenditure which has to be incurred in the said business to ensure sale of the software,for removal of obstructions, restrictions or disabilities on the sale - These were normal day-to-day expenses for running the business in question and did not create enduring rights or advantage or benefit over a long period time - The determination should be based upon consideration of facts and circumstances and by applying principles of commercial trading and business expediency - Decided against Revenue.
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