2008 (10) TMI 100

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..... - Since technology is fast changing and day-by-day systems are being developed in a new way, software may be needed like raw material - view taken by the Tribunal that computer software expenses were revenue in nature, is correct – revenue’s appeal is dismissed
ADARSH KUMAR GOEL and L. N. MITTAL JJ. Rajesh Sethi for the Revenue. JUDGMENT The judgment of the court was delivered by ADARSH KU .....

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..... The Commissioner of Income-tax (Appeals) upheld the claim of the assessee, which has been affirmed by the Income-tax Appellate Tribunal. 3. The finding recorded by the Tribunal on the question proposed to be raised is as under: "4. In regard to the third ground of appeal, it is stated that the issue is covered in favour of the assessee by the decision of the Tribunal in the case of M/s. Abhishek .....

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..... ust 28, 2001) wherein it was held to be of revenue nature. No contrary decision has been brought to our notice by the Revenue. Consequently, the ground of the Revenue is also having no merit.' Respectfully following the aforementioned decision, we uphold the decision of the Commissioner of Income-tax (Appeals) in regard to the treatment of software expenses as revenue expenditure and in deleting .....

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..... re Assam Bengal Cement Co. Ltd. v. CIT [1955] 27 ITR 34, CIT v. Vazir Sultan and Sons [1959] 36 ITR 175, Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 (SC) ; [1980] 4 SCC 25, Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377 (SC) ; AIR 1989 SC 1913 and CIT v. General Insurance Corporation [2006] 286 ITR 232 (SC). 7. In Alembic Chemical Works Co. Ltd. [1989] 177 ITR 377 (SC), the issue was .....

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..... at there may be cases where expenditure, even if incurred for an advantage of enduring benefit, may be revenue unless the advantage was in the capital field. 8. There is nothing to show that the software used by the assessee was of enduring nature and will not become outdated. Since technology is fast changing and day-by-day systems are being developed in a new way, software may be needed like ra .....

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