https://www.taxtmi.com/caselaws?id=64346 Expenditure on computer software must be classified by examining the nature of the commercial advantage, the enduring benefit test, ownership, and the functional role of the software in the business. Licence-based use does not by itself make the outlay revenue or capital; the decisive question is whether the payment creates an asset or advantage in the capital field, or merely facilitates day-to-day operations without affecting fixed capital. If the software is capital in nature, depreciation is available under the depreciation scheme, but the 60 per cent rate applies only prospectively from 1 April 2003; for earlier periods, normal depreciation applies. en-us Fri, 15 Feb 2008 00:00:00 +0530 Sat, 03 Feb 2024 10:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64346 Expenditure on computer software must be classified by examining the nature of the commercial advantage, the enduring benefit test, ownership, and the functional role of the software in the business. Licence-based use does not by itself make the outlay revenue or capital; the decisive question is whether the payment creates an asset or advantage in the capital field, or merely facilitates day-to-day operations without affecting fixed capital. If the software is capital in nature, depreciation is available under the depreciation scheme, but the 60 per cent rate applies only prospectively from 1 April 2003; for earlier periods, normal depreciation applies. Case-Laws Income Tax Fri, 15 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64346