2024 (7) TMI 57 - SCH - Income Tax

Nature of expenditure - expenditure in connection with the development of new products / software - revenue or capital expenditure - As decided by HC 2022 (12) TMI 190 - BOMBAY HIGH COURT appellant is admittedly in the business of development of software solution and management and therefore it s endeavour to develop a new software was nothing but an endeavour in its existing line of business of developing software solutions. Admittedly the product which was sought to be developed never came into existence and the same was abandoned. No new asset came into existence which would be of an enduring benefit to the assessee and therefore in these circumstances the expenditure could only be said to be revenue in nature. HELD THAT - No case for interference is made out in exercise of our jurisdiction under Article 136 of the Constitution of India. The Special Leave Petition is accordingly dismissed.

Summary

The Supreme Court dismissed the Special Leave Petition under Article 136 of the Constitution of India as no case for interference was made out. The pending application was also disposed of. No appearance was made on behalf of the respondent.