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TMI Blog2018 (9) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... yaraghavan, for M/s.Subbaraya Aiyar Padmanabhan And Ramamani ORDER COMMON JUDGMENT [Judgment of the Court was made by T. S. SIVAGNANAM, J] These appeals, by the Revenue, are directed against the common order of the Income Tax Appellate Tribunal Madras 'A' Bench, dated 29. 01. 2016 in ITA No. 1366/Mds/2014 for the Assessment Year 2001-02 and 2000-01. 2. The following substantial que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On appeal before the Tribunal, the assessee contended that in view of the advanced technology, the software becomes obsolete within short intervals. Further the software purchased were not customer made but one as could be used by anyone and the assessee has only a right to use. The assessee made an alternate submission that if it is treated as capital expenditure, depreciation as applicable to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven on lease' and that apart, the assessee has incurred expenditure towards installation of plant and machinery and in addition to it, it had incurred expenditure towards software expenses. The assessee claimed the installation expenses as deduction debiting it to the profit and loss account and the software expenses were treated in the accounts as deferred revenue expenditure, which was writt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered view, the decision in Bharti Televentures is not applicable to the case on hand as there is no material before the Tribunal or before the Assessing Officer as was pointed out in the said case. As held by the Honourable Supreme Court in Empire Jute Co. Ltd. v. CIT, [1980 (124) ITR 1 (SC)] there may be cases where expenditure, even if incurred for obtaining advantage, of enduring benefit, ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for an indefinite future. We are inclined to accept the submission made by the assessee before the Tribunal that in view of the advanced technology software become obsolete within short intervals. Therefore, the Tribunal rightly applied the decision in the case of Southern Roadways Ltd. The appeals are dismissed. The substantial question of law is answered in favour of the assessee and against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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