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TMI Blog2019 (7) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... The Lakshmi Vilas Bank Ltd., [ 2018 (9) TMI 1094 - MADRAS HIGH COURT] and dismissed the tax case appeals filed by the Revenue. This decision of ours has been confirmed by the Hon'ble Supreme Court in CIT vs. Lakshmi Vilas Bank Ltd., [ 2019 (4) TMI 839 - SC ORDER] by which the special leave petitions were dismissed. - Decided in favour of assessee. - Tax Case Appeal No.469 of 2018 - - - Dated:- 17-6-2019 - Mr. Justice T.S. Sivagnanam And Mrs. Justice V. Bhavani Subbaroyan For the Appellant : Mrs.R.Hemalatha, Senior Standing Counsel For the Respondent : Mr.R.Venkatanarayanan, for M/s.Subbaraya Aiyar, Padmanabhan Ramamani JUDGMENT T.S.SIVAGNANAM, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel is that the Tribunal was solely guided by the decision of the Division Bench of this Court in the case of Commissioner of Income-tax vs. Southern Roadways Ltd., reported in [2008] 304 ITR 84 (Madras) and this judgment of the Division Bench having been reversed by the Hon'ble Supreme Court, the order passed by the Tribunal calls for interference. 6.In our considered view, this is not the only aspect in considering whether the Revenue has made out a case for entertainment. What is required to be seen is whether the order passed by the CIT(A) in allowing the expenditure as a revenue expenditure was justified or not. We have gone through paragraph 5 of the order passed by the CIT(A), dated 08.01.2013, which rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he software maintenance support fees are paid on a yearly basis and hence the expenditure is towards the maintenance of the software and TDS for such payments have been duly deducted and paid................ 5.2............ It is pertinent to note that the appellant had paid software license fees and maintenance fees of ₹ 98,01,867/- to Aspen Tech for the system which is used by the refinery for making decision support solution for optimizing production. Moreover, these are paid on a yearly basis and therefore, they are towards maintenance of the software and TDS was also duly deducted and paid. As the expenditure is in the nature of recurring, it has to be treated as revenue expenditure. On the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puter software' which is used as technique in mining and operations. On facts, the Court held that the acquisition of technical know-how is a capital expenditure. In the instant case, as noticed by us and referred to above, the CIT(A) has examined the factual position and found that the expenditure is in the nature of revenue expenditure. Therefore, the decision in Arawali Construction Co. (P) Ltd. (supra) is distinguishable on facts. 11.Mrs.R.Hemalatha, learned Senior Standing Counsel referred to the decision of the High Court of Delhi in the case of Bharti Televentures Ltd. vs. Additional/Joint Commissioner of Income-tax reported in [2013] 29 taxmann.com 326 (Delhi). 12.We have gone throug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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