TMI Blog2015 (8) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... ur of assessee. Computer software expenses - revenue v/s capital expenditure - Held that:- The expenses were incurred to obtain the application software which gets upgraded from time to time due to change in technology. This licence being for limited period would have to be renewed from time to time. In the aforesaid circumstances, the Tribunal held that considering the nature of the software licence i.e. application software, the same has to be allowed as a revenue expenditure. In view of the finding of fact arrived at further by the Tribunal that the expenses have been incurred on application software which is for a limited time frame and has to be renewed from time to time, we see no reason to entertain question B as framed by the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER 1. In this appeal by the revenue for the assessment year 2004-05, the following questions of law have been raised for our consideration:- A. Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that expenses incurred in obtaining club membership is revenue in nature as held by the assessing officer and confirmed by CIT (A)? B. Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that computer software expenses incurred by the assessee were revenue in nature and not capital expenditure as held by the assessing officer and confirmed by CIT(A) ? C. Whether on the facts and in the circumstances of the case and in law, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot in dispute that various decisions of the Tribunal had followed the decision of this Court in the matter of Otis Elevator Co. (India) Ltd. (supra) and allowed entrance fees of club as revenue expenditure. Further, this Court has also in numerous matters applied the decision of Otis Elevator Co. (India) Ltd. (supra) to the cases were entrance fees of club membership was an issue in dispute and held that the same is allowable as revenue expenditure. In view of the above, we do not entertain the question as formulated. 3. So far as question B is concerned, the Tribunal has held that the computer software expenses incurred by the respondent-assessee was revenue in nature. The expenses were incurred to obtain the application software which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and compensation for pipe line rental paid to MIDC. Thus, the aforesaid heads of compensation were in the nature of revenue expenditure and not capital expenditure. We find that the finding of the Tribunal is a reasonable one and does not lead to any question of law. In the circumstances, question C is not entertained. 5. So far question D is concerned, the Tribunal has followed the decision of the Apex Court in the case of T.R.F. Ltd. v. CIT [2010] 323 ITR 397. Counsel for the parties state that the issue stands covered in favour of the assessee and against the revenue by the decision of TRF Ltd. (supra). Accordingly, we see no reason to entertain question D. 6. Therefore, the appeal is dismissed with no order as to costs. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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