2014 (12) TMI 187

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..... opment expenses of 1.81 crores claimed an amount of 63.74 lacs were of a routine and periodic nature such as software maintenance charges, annual maintenance contracts, etc. and did not create any capital asset - the expenses allowed were of a revenue nature as they did not create any new assets nor any enduring advantage was gained by the assessee as a result of the expenditure – Thus, the order .....

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..... expenses?" 3. The Assessing Officer by order dated 27th December 2007 disallowed the expenses of ₹ 1.91 crores claimed on account of software expenses and product development charges. This was on negativing the respondent Assessee's contention that these expenses were allowable under Section 37(1) of the Act as these were routine expenses incurred on website content upgradation and .....

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..... Commissioner of Income Tax (Appeals). The Tribunal on examination concluded that the expenses allowed were of a revenue nature as they did not create any new assets nor any enduring advantage was gained by the respondent Assessee as a result of this expenditure. Thus the Appeal of the revenue was dismissed. 5. We find that in the present case there are concurrent findings of fact arrived by CIT ( .....

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