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TMI Blog2018 (9) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. The Tribunal, came to finding of fact while holding that expenditure incurred towards routine maintenance and procuring license of software could not be treated as capital assets. There is no perversity involved in such finding. No substantial question of law involved in this appeal. - ITAT No.340 of 2017 And GA No.3505 of 2017 - - - Dated:- 28-6-2018 - MR. ANIRUDDHA BOSE AND MR. AMITABHA CHATTERJEE, JJ. For The Appellant : Mr. R. N. Bandopahyaay, Adv. And Mr. Aniket Mitra, Adv. For The Respondent : Mr. J.P. Khaitan, Sr. Adv. And Ms. Nilanjana Banerjee Pal, Adv. ORDER The Court:- The only question, which has been urged before us by Mr. Bandopahyaay, learned Counsel for the Revenue for admission of this appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as under :- In respect of depreciation of- ( i) buildings, machinery, plant or furniture, being tangible assets; ( ii) know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets acquired on or after the 1st day of April, 1998, owned, wholly or partly, by the assessee and used for the purposes of the business or profession, the following deductions shall be allowed. During the year, the appellant has paid the amount of ₹ 89,61,850/- to M/s.SAP India Pvt. Ltd. for purchase of SAP license including maintenance. The appellant has also paid the amount of ₹ 87,37,040/- to M/s.Sonata Information Tech. Ltd. f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h was once the state of the art becomes obsolete in a short time, the test of enduring nature cannot always reliably be applied. Software industry is one such field where advancements and changes happen at a lightning pace and it is difficult to attribute any degree of endurability even to system software let alone application software. The coordinate Bench applied the endurance test, which was laid down by the Hon ble Supreme Court of India in the case of Alembic Chemical Works Co. Ltd . Vs. Commissioner of Income Tax reported in [1989] 177 ITR 377 (SC) in coming to its finding. In the case of Alembic Chemical Works Co. Ltd.(supra) the Hon ble Supreme Court of India was examining the characteristic of know-how relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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