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TMI Blog2024 (5) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... o rapid change in the technology, the application sought to be developed by Assessee had become obsolete and the Assessee abandoned further development. In substance, Assessee has incurred expenditure in these two years to develop a software but due to change in technology, it had to abandoned the product. In effect, it had lost money spent on this product. The product having been abandoned, the Assessee shall not get any endure in benefit. The ITAT, in our considered opinion has correctly analised the facts in para No.10 of the impugned judgment and allowed the appeals. Decided in favour of assessee. - THE HON'BLE MR JUSTICE P. S. DINESH KUMAR And THE HON'BLE MR JUSTICE C. M. POONACHA FOR THE APPELLANTS : BY SRI. DILIP M, STANDIN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals are one and the same. Hence, they are considered and disposed of by this common judgment. 4. Undisputed facts of the cases are that Assessee is a Company engaged in the business of rendering customized internet advertising services for advertisers which could be used on the Desktop. In order to develop its software, Assessee had incurred expenditure of Rs. 6,06,30,146/- during the year 2015-16 and Rs. 20,80,24,899/- during 2016-17. 5. Assessing Officer has recorded in his order that the Assessee was developing a software for advertisement. If the said software platform was developed, it would have given enduring benefit to Assessee. On this premise, he treated the expenditure as capital in nature. The CIT(A) Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the technology, the application sought to be developed by Assessee had become obsolete and the Assessee abandoned further development. In substance, Assessee has incurred expenditure in these two years to develop a software but due to change in technology, it had to abandoned the product. In effect, it had lost money spent on this product. The product having been abandoned, the Assessee shall not get any endure in benefit. The ITAT, in our considered opinion has correctly analised the facts in para No.10 of the impugned judgment and allowed the appeals. We do not find any ground to interfere with the findings recorded by the ITAT. 11. In view of the above, the following: ORDER (i) Both appeals are dismissed; (ii) The substantial questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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