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TMI Blog2006 (10) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... by P.D. DINAKARAN, J. The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal dated April 28, 2006 made in ITA Nos.96/Mds/2000 for the assessment year 1999-2000. 2. The Revenue is the appellant. The Assessing Officer disallowed the claim of replacement expenditure of Vibrator 0.5 HP Motor and cost of repairing Driver Cabins and Oil Tanker holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ftware is revenue expenditure ?" 3. With regard to the first question, the question whether the expenditure on replacement of machinery is capital or revenue is not determined by the treatment given in the books of account or in the balance sheet. The claim has to be determined only by the provisions of the Act and not by the accounting practice of the assessee. In the instant case, the Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue and in favour of the assessee. 6. With regard to the 2nd question, viz., whether the expenditure incurred on the upgradation of software is revenue expenditure, the assessee did not claim any expenditure for installation of new computers, but claimed the expenditure for upgradation of existing computers. Further, the expenditure was incurred for improving the efficiency of the exi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nduring nature' was evolved to emphasise the element of a sufficient degree of durability appropriate to the context." 8. It was also held that the phrase "enduring benefit" is not thinking of advantages that are permanent. There is a difference between the lasting and the everlasting. 9. In the light of the above ratio laid down by the Supreme Court, we are of the view that upgradation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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