2007 (7) TMI 185 - HC - Income Tax

Expenditure incurred by the Assessee on software, MS Office this software is not a custom built software for the Assessee and it is common knowledge that this software requires regular upgradation - Tribunal was of the view that due to technological changes and the need to upgrade the software on a regular basis it cannot be said that the software was of an enduring nature - no error committed by the Tribunal in taking the view that expenditure incurred are not capital expenditure

Summary

The Delhi High Court allowed exemption in CM No. 8353/2007, disposed of CM, and dismissed ITA No. 560/2007. The Revenue was aggrieved by an order regarding the treatment of software expenditure as capital expenditure. The Court upheld the Tribunal's view that MS Office software, not custom-built, requires regular upgrades and is not of enduring nature. No substantial question of law arose, so the appeal was dismissed.