https://www.taxtmi.com/caselaws?id=328033 Deduction under section 80HHE is confined to the eligible software export business, and where separate books are maintained, the computation may be made on that division's profits, export turnover and total turnover rather than on the assessee's combined businesses. A software licence fee paid to improve business efficiency, without creating a new capital asset or new business line, is revenue expenditure; connected royalty, TDS and section 40(a)(i) issues may require fresh examination where not fully considered. Deferred revenue accounting entries are not conclusive for tax purposes: ordinary business expenses remain deductible if revenue in nature. Interest on borrowed funds used for business remains deductible under section 36(1)(iii) even if capitalised in the books, and ad hoc expense disallowances require a specific factual basis. en-us Wed, 20 Apr 2016 00:00:00 +0530 Wed, 25 May 2016 08:24:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328033 Deduction under section 80HHE is confined to the eligible software export business, and where separate books are maintained, the computation may be made on that division's profits, export turnover and total turnover rather than on the assessee's combined businesses. A software licence fee paid to improve business efficiency, without creating a new capital asset or new business line, is revenue expenditure; connected royalty, TDS and section 40(a)(i) issues may require fresh examination where not fully considered. Deferred revenue accounting entries are not conclusive for tax purposes: ordinary business expenses remain deductible if revenue in nature. Interest on borrowed funds used for business remains deductible under section 36(1)(iii) even if capitalised in the books, and ad hoc expense disallowances require a specific factual basis. Case-Laws Income Tax Wed, 20 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328033