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TMI Blog2014 (10) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness - The expenses incurred by installation of software packages in the present computer world, which revolves on the modern communication technology, enables the assessee to carry on its business operations effectively, efficiently, smoothly and profitably - such software itself does not work on a standalone basis - It has to be fitted to a computer system to work - Such software enhances th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the Revenue as against the order of the Income Tax Appellate Tribunal for the assessment year 2002-03 raising the following substantial question of law: Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the expenditure on software is not capital and thereby allowing the assessee's claim for deduction of revenue expenditure? 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax V. Southern Roadways Ltd.) granted the relief in favour of the assessee. Aggrieved by the same, the Revenue preferred an appeal before the Tribunal, which confirmed the order of the Commissioner of Income Tax (Appeals). Aggrieved by the same, the Revenue is before this Court raising the substantial question of law referred supra. 3. Both the learned standing counsel appearing fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication technology, enables the assessee to carry on its business operations effectively, efficiently, smoothly and profitably. However, such software itself does not work on a stand alone basis. It has to be fitted to a computer system to work. Such software enhances the efficiency of the operation. It is an aid in the manufacturing process rather than the tool itself. Therefore, the payment f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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